Should LVMH Investors Worry About Trump's Latest Tariff Threat?
A World Trade Organization (WTO) panel recently ruled that the U.S. can impose tariffs on European exports in retaliation for the EU's violation of WTO rules with its government subsidies for aircraft manufacturer Airbus (OTC: EADSY). Shares of Airbus fell after the ruling, but shares of other European companies that generate significant revenue from the U.S. -- like luxury giant LVMH (OTC: LVMUY) -- also tumbled.
I previously highlighted LVMH as a good defensive stock for the trade war between the U.S. and China, but the threat of new U.S. tariffs against European companies raises some questions about my original thesis. Let's examine this case and see if LVMH investors should be concerned.
Image source: Louis Vuitton.
Source Fool.com
