Donald Trump’s trade policies, particularly the tariff escalations against China and the European Union, have had profound ripple effects across the global luxury fashion ecosystem. While tariffs were originally designed to favour American manufacturing, they have inadvertently raised the cost of imported luxury goods — and shifted how brands like Gucci, Chanel, and Louis Vuitton operate globally.

Luxury labels have responded by adjusting supply chains, exploring regional production hubs in Vietnam, Turkey, and even Eastern Europe, and recalibrating retail pricing to maintain profitability. For shoppers in the UK and Europe, this has led to a curious scenario — where prices of high-end goods are more stable locally than in the US, driving a new wave of “destination shopping tourism.”

According to a recent Bain & Company report, over 60% of luxury shoppers globally are now “price aware,” and more than 30% consider international pricing arbitrage when making a major purchase like a designer bag or luxury timepiece.

This environment has opened up unique advantages for savvy shoppers. With the pound stabilising and European VAT refund schemes in place, UK and EU-based shoppers have an edge. For American tourists, London and Milan have quietly become the new capitals for luxury shopping trips.

At WeCarryBags, we believe that understanding tariff dynamics is as important as knowing seasonal trends. If you’re buying for value as well as style, timing your purchases and choosing the right geography could save you hundreds — or even thousands — over time.