Changes to US tariffs on overseas imports will likely impact the majority of online and bricks and mortar luxury retailers.
This is according to a statement to market by Australian luxury platform Cettire, which cited that a significant proportion of luxury items are manufactured in the European Union.
“Cettire is currently assessing the full implications of these tariff changes on the company and its global operations, noting that several major luxury brands have indicated they would seek to increase pricing of luxury goods in the US market to mitigate possible tariff changes,” the luxury platform stated.
The statement comes as United States President Donald Trump issued a new sweep of tariffs, including a 10 per cent tariff on all imports from the United Kingdom, and a 20 per cent tariff on all imports from the European Union.
Regarding these changes, Cettire’s statement declared that approximately 41 per cent of the platform’s total gross sales in the first half of FY25 related to goods manufactured in the EU and sold to customers located in the US.
“No immediate changes to the US de minimis exemption have been made in relation to EU manufactured goods,” Cettire noted.
“As such, shipments below $US800 will continue to be exempt from duties and are unaffected by today’s tariff changes.”
According to Cettire, it’s average order value in the recent first half was $821, which is around US$514.
“Cettire began identifying strategies to prepare for and mitigate potential changes to the US tariff regime throughout calendar 2024 and the first quarter of 2025,” the company added.
“The company’s localisation strategy has underpinned a continued broadening of the geographic revenue base, which Cettire expects to continue.”