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.
Swiss duty-free retailer Avolta reported a slightly better-than-expected annual turnover on Wednesday, helped by growth across all regions amid solid leisure demand.
Reuters
The company, which runs shops at airports, on cruise liners, in seaports, and other tourist locations worldwide, posted an annual core turnover of 13.47 billion Swiss francs ($15.24 billion), up from 12.53 billion francs a year earlier, and slightly ahead of analysts’ forecast of 13.43 billion francs in a poll by Vara Research.
In the medium term, Avolta is targeting core turnover growth of 5-7% per year at constant exchange rates, along with an annual improvement in core profit margins of 20-40 basis points.
For the medium term, Avolta is still targeting core turnover growth at constant exchange rates of 5-7% per year, and an annual improvement in core profit margins of 20-40 basis points.
Founded in 2019 by Franco-American Emmanuelle Rienda, Vegan Fashion Week is now reinventing itself with a new look and a new name: the “Ethical Luxury Summit”. Held in Los Angeles since its origins, the event took place on Monday and Wednesday at the California Market Center in Downtown LA.
Victor Clavelly alien looks at Ethical Luxury Summit, Downtown Los Angeles – Alexis Chenu
“The Ethical Luxury Summit marks a turning point and a great evolution of the Vegan Fashion Week,” explained Rienda. “Six years ago, no one was really talking about vegan fabrics or sustainability. My personal journey, my encounters with emerging designers and our conversations on the use of recycled animal fabrics and ethically produced materials, helped our event evolve. Today, we are expanding our event to include ethical fashion. This new approach is now receiving more attention from fashion houses and luxury brands, and opening new doors.”
The highlight of the event, the “Golden Hour Fashion Show”, brought together a host of guests, including podcaster and bestselling author Jay Shetty; actress Richa Moorjani; Norwegian prince and shaman Durek Verrett; French actor and artist Romain Brau; and stylist Philippe Uter.
The famous Parisian school Ecole Duperré opened the show with the presentation of collections by two young designers from the school. “Our participation is linked to our curiosity and also to our focus on sustainable fashion, which is in our DNA,” explained Mathieu Buard, director of Fashion and Image Studies at Ecole Duperré.
“The school has been working with recycled fabrics for a long time, even before we started talking about ecology and sustainability. This theme is at the heart of our educational program, and particularly of our creative and design processes,” added Buard.
Guy Chassaing from Ecole Duperré at Ethical Luxury Summit, Downtown Los Angeles – Alexis Chenu
Watched by 400 guests, the mutant silhouettes of designer Victor Clavelly, bewitched a Los Angeles audience always in love for stories of aliens. Noted a few months ago for his collaboration with Rick Owens around extraordinary feather boots, Clavelly presented short, lamé dresses with pointed shoulder pads, pixelated tops and plant-print jumpsuits punctuated by long hands reminiscent of alien anatomy.
This was followed by another talent, Guy Chassaing, also a graduate of the Ecole Duperré, and now part of the Alaïa fashion house. “Eight voluminous silhouettes inspired by my desire to recycle and my grandmother, who used rags, shreds and scarves to put together looks and outfits,” said Chassaing.
“This is the starting point for my collection, which is created from scraps of wool needled one by one onto silk organza. A time-consuming technique, requiring over 250 hours of work for each dress, but a way for me to compose new creations from new textures and textiles”.
The second part of the show featured Moroccan fashion collective Label Oued in an ultra-colorful collection full of nods to Morocco and California. A manifesto collection co-created by four designers – Mina Binebine, Nadia Chellaoui, Youssef Drissi and Angeline Dangelser – and produced in collaboration with Balmain, supplier of the fabrics.
Label oued collective presented its first show co-created by four Moroccan designers – Alexis Chenu
“Since 2023, Label Oued has brought together Moroccan designers and helping them to shine internationally,” explained Dangelser, a former designer for Parisian luxury houses, now based in Casablanca.
“In addition to traditional know-how, we encourage them to take an interest in textile innovations and offer an alternative to fast fashion. Collaboration with Balmain and textile manufacturers such as Subliwear has given rise to this original collection, which both hijacks Moroccan symbols and plays on Californian codes.”
Alongside the show, the Ethical Luxury Summit also organized six round tables and conferences exploring the relationship between luxury and ethical fashion. Among the topics discussed were “Is ethical fashion the new luxury?”; “AI, fashion tech and transparency in luxury goods”; and “The role of artisanship and cultural heritage in modern luxury”.
The event also invited some 20 international brands and ethical designers to present their collections and stories in its designer gallery. Among them were local and made-in-Los Angeles brands such as Tanaka, the upcycling brand founded by British designer Ana Tanaka; and bags made from cactus or apple fibers by Carter Wade.
Ana Tanaka booth at the Designer Gallery, Ethical Luxury Summit, Los Angeles – Alexis Chenu
Represented by Los Angeles-based press office Maison Privee, De Florencio unveiled the “rockstar, streetwear and futuristic” label founded by Nino Cutraro and made entirely from dead stocks in Los Angeles. A label adored by the Tik-Tokers and influencers who flocked to the Melrose Trading Post, where the brand regularly presents its collections.
In a completely opposite genre, Parisian couture atelier Atelier 7474 and its founder Audrey Geschwind presented its supra VIP creations. Used to collaborating with the great luxury houses, from Balmain to Loewe, creating costumes and outfits for the Paris Opera, and for top international stars such as Rihanna, Ariana Grande and Lady Gaga, the designer presented in Los Angeles her creations revisiting traditional tutus.
“We’ve just come back from Las Vegas, where we presented unique outfits at the Magic trade show. A sort of reversed tutu for men, each piece requiring over 100 hours of handwork,” said Geschwind. “As the American market is crucial for our company, we’re also taking advantage of the Ethical Luxury Summit to present my collection of modular jewelry dresses, made from dead stocks.”
Atelier 7474 reversed tutu – Atelier 7474
A few steps from Atelier 7474, Italian shoe brand Zingales revealed its vegan richelieus and derby models. “The American market is crucial to our development and particularly open to vegan footwear,” explained brand founder and vegetarian, Vincenzo Zingales. “Our shoes are made from an alternative suede of the future, manufactured from PVC-free ultra-microfibers. Even the Vibram sole is made from 90% non-petrochemical ingredients, right down to the color made from natural pigments.”
The first edition of the Ethical Luxury Summit, organized with the support of MMGNET Group, concluded with a fundraising gala on the rooftop of the California Market Center, where cocktails and vegan snacks by French pastry chef François Daubinet delighted the audience.
The race to secure La Perla‘s future has reached a pivotal stage. Following the deadline for expressions of interest, around 20 bidders—primarily international players—have gained access to the virtual data room containing the financial and operational details of the iconic Italian lingerie brand, which is currently under extraordinary administration. These interested parties now have approximately one month to analyze the company’s situation before submitting binding offers.
La Perla
Buyers will submit sealed bids in May, and the strongest offer will follow shortly after. La Perla’s sale will close by the end of June. The deal includes La Perla Manufacturing, which operates the brand’s Bologna production facility, along with a brand licensing agreement with a purchase option. The sale may also cover La Perla Global Management UK’s Italian operations and its subsidiaries in the UAE and China.
Sources close to the deal reveal that most interested parties are international companies. However, Sandro Veronesi, founder of Oniverse (formerly Calzedonia)—whose name had been widely speculated—is not on the bidders’ list.
That said, new contenders could still enter the race. A buyer could still submit a binding offer without having previously expressed interest, though doing so would mean placing a bid without access to La Perla’s confidential financial data—a considerable risk in a high-stakes acquisition.