LVMH Shares take a plunge due to the US Chinese trade war.
Shares of luxury brands are taking a hit due to the "trade war" between the US and China. The plunge in shares takes an apparent hit on Wednesday when LVMH shares drop 7.1%. The largest drop in shares since 2009 for the corporation that owns brands like Louis Vouitton and Dom Pérignon champagne.
Chinese officials are cracking down on travelers returning from places like Paris, London, and Tokyo where luxury products are at a significantly lower rate because of the duty free allowances. In the past 24 hours that travelers returning home to Hong Kong or Beijing are paying custom levy of up to 60%.
LVMH is only an isolated case of this decrease in shares. Rivals including Kering SA, the brand that owns Gucci, Tiffany and Co., Michael Kors holdings, and Tapestry Inc followed suit.