Uncertainty brought by U.S. President Donald Trump‘s threats of tariffs and his shape-shifting trade policies are starting to have a chilling effect across many industries, businesses warn, as consumers pull back on everything from basic goods to travel.
Reuters
Trump’s back-and-forth tariff moves against major trading partners have kept businesses, consumers and companies on edge, prompting companies to warn they may have to raise prices, which could boost inflation and dent economic growth.
While Trump has said his policies could cause short-term pain, concerns about their economic fall-out intensified over the weekend after he declined to predict whether his economic policies would cause a recession.
On Monday, such fears fuelled a stock market sell-off that wiped nearly $5 trillion from the S&P 500’s peak last month, when Wall Street was cheering much of Trump’s agenda.
Speaking after the market close on Monday, Delta Air Lines CEO warned that economic worries among consumers and businesses were already hurting domestic travel.
“We saw companies start to pull back. Corporate spending started to stall,” CEO Ed Bastian told CNBC on Monday. “Consumers in a discretionary business do not like uncertainty.”
Cuts by Americans to discretionary spending knocked airline stocks on Tuesday and with each day, evidence is mounting across the corporate world that the chaotic implementation of Trump’s tariffs is translating into caution on Main Street.
Trump is expected to speak with around 100 CEOs at a regular meeting of the Business Roundtable in Washington, an influential group that includes bosses of major U.S. companies from Apple to JPMorgan Chase and Walmart. The Republican president met with technology company executives at the White House on Monday.
The latest round of Trump tariffs – 25% levies on imported steel and aluminium – kick in on Wednesday.
The tariffs will apply to millions of tons of steel and aluminium imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs.
Trump has vowed the tariffs will be applied “without exceptions or exemptions” in a move he hopes will aid the struggling U.S. industries.
On Tuesday, he said he was doubling the planned tariff on all steel and aluminium imports from Canada, bringing the total to 50%, in response to the province of Ontario imposing a 25% surcharge on electricity it exports to the United States.
In a post on Truth Social, Trump also threatened to “substantially increase” tariffs on cars coming into the United States on April 2 “if other egregious, long time Tariffs are not likewise dropped by Canada.”
Ahead of these measures, a range of recent surveys of U.S. businesses and consumers have shown deteriorating sentiment, which, if sustained, could hamper investment and household spending. The National Federation of Independent Business – a Washington lobby group whose members staunchly supported Trump in the 2024 election – reported small business sentiment weakened for a third straight month, erasing the bump from Trump’s election victory.
“Uncertainty is high and rising on Main Street, and for many reasons,” said NFIB Chief Economist Bill Dunkelberg, without elaborating.
That followed Monday’s monthly New York Fed survey of consumer expectations showing households were growing more pessimistic about their financial prospects in the year ahead and a higher share of respondents expecting a rise in unemployment.
U.S. businesses broadly had greeted Trump’s election with optimism, fuelled by pledges of deregulation and tax cuts.
But Republicans in Congress have yet to agree on a plan that would allow them to cut taxes and instead are focused this week on averting a government shutdown when funding expires at midnight on Friday.
Companies sensitive to shifts in consumer and business sentiment are sounding the alarm about slowing demand for household and industrial goods.
Germany’s Henkel, which makes Sellotape and Schwarzkopf hair products, said on Tuesday that Washington’s policies were hurting the U.S. market disproportionately.
The company which also makes adhesives, currently sees a “reluctance” in terms of demand in the U.S. for both consumer and industrial segments, CEO Carsten Knobel told reporters.
It was too early to quantify a possible impact on its business as the situation remains volatile, he said.
Kohl’s Corp forecast profits below Wall Street estimates, as the U.S. department store chain grapples with uneven demand.
Larger rivals Macy’s and big-box retailers Walmart and Target have also tempered expectations as U.S. inflation risks rise and recession fears mount.
Telecom firm Verizon Communications’ shares fell after it said first-quarter growth will probably be “soft”.
Christian Schulz, deputy chief European economist at Citi, said growing fears about a U.S. recession will make life even harder for companies.
“Companies will have a tougher time in the short term to make investment decisions for the long term,” he said.
eBay continues to develop its fashion resale category introducing a “groundbreaking” editorial and fashion film project, ‘The Goat Dancer’, culminating in the launch of an inspirational fashion edit.
The digital retail giant is “championing the transformative potential of pre-loved fashion sourced entirely on eBay” by joining forces with fashion photographer Nick Knight, stylist Lara McGrath and creative film/photography venue ShowStudio to develop the project.
With McGrath having established “an inventive and outré approach to styling” and Knight being “captivated by the stylist’s ability to layer and style pre-loved garments into visionary ensembles”, the stylist documents mirror portraits of herself in public changing rooms.
The ShowStudio collaboration brings that creative spirit to life “offering a treasure trove of fashion finds – all £50 and under – ready to be revived and reimagined”.
From scoring Jil Sander shoes for £30 to finding beauty in a Per Una chiffon top, repurposing a kimono into a fishtail skirt, or transforming a bedspread into a dramatic cape, “the project showcases the endless possibilities of second-hand fashion reimagined”.
With old-school glamour inspiring the hair look for the shoot created by Eugene Souleiman, and noughties-inspired make-up by Lynski, Knight and McGrath “crafted a surreal visual narrative that highlights the potential of reimagining fashion through sustainability and artistry”.
Live-streamed on ShowStudio, the shoot “celebrates individuality, reinvention, and the thrill of uncovering hidden gems in pre-loved fashion on eBay—proving that style, creativity, and sustainability go hand in hand”.
To celebrate the collaboration, eBay has also curated an exclusive ShowStudio x Lara McGrath edit featuring secondhand fashion pieces inspired by the shoot, “inviting designers to reimagine archival and pre-loved styles into fresh, relevant works of art that transcend time”.
Dior announced on Wednesday the opening of a new store in Vienna, Austria.
Dior opens new boutique in Vienna’s Goldenes Quartier. – Dior
Located on Tuchlauben Street in the Goldenes Quartier, the city’s luxury fashion epicenter, the boutique spans over 1,000 square meters and houses Dior’s diverse collections, from women’s and men’s ready-to-wear to bags, shoes and accessories, including jewelry, Dior maison lines and perfumes.
The boutique is enhanced by a signature concept designed by architect Peter Marino, defined by a refined atmosphere illuminated by light tones. Design details combining cabochon stone, wood, Versailles parquet flooring and moldings create an ultra-contemporary aesthetic, while honouring the House’s storied heritage.
Honoring Christian Dior’s passion for art and design, the boutique features a magnetic installation by Claudia Wieser, paintings by Christian Eisenberger, Rudolf Polanszky, John McAllister, Maysha Mohamedi, Ross Bleckner, and Donald Sultan, as well as creations by Étienne Moyat and Franck Évennou. Photographic prints on mirror by Marc Swanson and a striking bronze sculpture by Philippe Pasqua add to the boutique’s artistic allure.
The boutique’s furniture selection also contributes to its distinct identity, featuring pieces from designers such as Claude Lalanne, Studio Glithero, Alasdair Cooke, Ado Chale, Delos & Ubiedo, Gary Noffke, Osvaldo Borsani, Ginger & Jagger, and B G Robinson.
Completing the space is the display of multiple reinterpretations of the iconic Lady Dior bag. In the boutique’s window, a multitude of variations is presented, sublimated by minerals—a feat of Isaac Monté—creating a chromatic finish. Within the store, visitors can explore a dedicated wall celebrating the ninth edition of the Dior Lady Art project, by several international artists.
Bernard Arnault, 76, could remain at the helm of the world’s largest luxury group LVMH until he’s 85 if shareholders back a company proposal at its annual shareholder meeting on April 17.
Reuters
Investors in LVMH, which owns high-end labels including Louis Vuitton, Dior and Tiffany, will vote on a change to company bylaws raising the maximum age of its chairman and chief executive officer from 80, according to a company filing.
The maximum age was already increased from 75 in 2022.
Arnault, who is CEO, chairman and, along with his family, controlling shareholder of LVMH, built his sprawling empire spanning hotels and fashion houses through acquisitions.
Chairman of the company since 1989, the tycoon has not publicly named a successor. Every high-level management change is highly scrutinised, kicking off a fresh round of speculation over which of his five children might succeed him.
All of Arnault’s children hold top management positions in the group. The eldest, Delphine, 49, and Antoine, 47, are children from his first marriage.
Alexandre, 32, Frederic, 30, and Jean, 26, are children of the luxury executive’s current wife, Helene Mercier.