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Highlight:
- Cettire (ASX:CTT) anticipates pricing changes in response to US tariff hikes on EU-made luxury goods
- Around 41% of Cettire’s first-half sales were from EU products shipped to the US
- Luxury brands signal broader price increases across the US to counter tariff impacts
Global luxury fashion platform Cettire Ltd (ASX:CTT) has flagged potential price increases in the United States following proposed changes to trade policy affecting European-manufactured goods. The development comes as US authorities consider implementing a 20% tariff on a wide range of European imports, a move that could impact a significant portion of Cettire’s inventory.
Cettire, which offers a vast selection of high-end fashion and designer goods online, currently derives approximately half of its total revenue from US-based consumers. A substantial 41% of the company’s first-half sales were linked to European-made products that were delivered to customers in the United States, placing a significant portion of its revenue base at potential risk from tariff policy changes.
The company confirmed it is still in the process of reviewing and assessing the exact impact of the proposed US tariffs, particularly in relation to how they will affect its pricing strategies and supply chain operations. While no immediate regulatory shifts have been made to the US de minimis exemption—an allowance that exempts shipments valued under $US800 from import duties—the average order value on Cettire’s platform during the first half was $821 (approximately $US514), positioning many transactions just above the exemption threshold.
This makes the potential impact of new tariffs even more relevant to Cettire’s core operations. The de minimis rule has historically offered a cost-saving mechanism for international e-commerce players shipping small parcels directly to US consumers, allowing companies like Cettire to remain competitive on price while offering access to premium brands.
Several leading European luxury brands that form part of Cettire’s catalogue have already signaled their intentions to raise US prices as a method of absorbing the financial burden imposed by these potential trade barriers. Should these price adjustments go ahead, the broader luxury retail landscape in the US may experience a ripple effect, leading to higher retail prices for consumers and possible shifts in buyer behaviour.
Cettire has acknowledged this macroeconomic development could compel a reevaluation of its market dependency. While the US currently represents the company’s largest geographic market, efforts are underway to diversify revenue streams by growing operations in other regions. This may include strategic investment into non-US markets and the broadening of supplier networks to reduce exposure to Europe-centric supply chains.
The outcome of this evolving tariff situation will likely influence strategic decisions for Cettire in the near term. This includes pricing strategy recalibrations, logistics optimisation, and market penetration efforts in regions less impacted by geopolitical trade tensions. Cettire’s business model, which emphasises scalability and cross-border e-commerce, faces the complex task of balancing regulatory compliance with consumer demand for competitive luxury offerings.
As the luxury retail sector navigates these latest headwinds, companies operating at the intersection of fashion, global trade, and digital commerce—such as Cettire—will need to monitor developments closely and implement agile responses to preserve both growth and profitability.
