Global economy braces for Trump's trade war and its consequences
Since early April, only two agreements have been signed: one with the United Kingdom and another with Vietnam. A deal was also reached with China to reduce the exorbitant tariffs the two countries had imposed on each other. Tariffs of "30% or 35%" could be imposed on imports from Japan, compared with the 24% rate announced in April, after Trump criticized Tokyo at the end of June for refusing to commit to buying American rice. The European commissioner for trade, Maros Sefcovic, is expected in Washington this week to try to secure an agreement that would reduce US customs barriers in key sectors such as automobiles and steel.
After the initial shock of the US president's tariff announcements, it was his many about-faces on trade policy that unsettled investors. This climate of uncertainty prompted companies to defer investments, risking an economic slowdown. Reflecting this loss of confidence, the dollar posted its worst performance in 50 years in the first half of the year. The dollar index, which measures the US currency against a basket of other major currencies, fell 10.8% over the first six months of the year.
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Shein faces government crackdown in France as minister confirms ongoing investigations
The French government has sent a clear signal to the ultra-fast fashion sector. On July 3, Trade Minister Véronique Louwagie announced that Shein had been fined €40 million for deceptive business practices. Speaking at the annual event hosted by Alliance du Commerce—an organization representing 16,000 stores and 150,000 retail workers in France—Louwagie addressed an audience of retail chain and department store representatives in Paris. During the morning's discussions, concerns were repeatedly raised about the competitive imbalance posed by ultra-fast fashion players who operate outside the regulatory frameworks that European retailers must follow. The fine issued against Shein followed an investigation by the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control). Louwagie added that 'other investigations are underway,' although she declined to provide further details. Responding to frustration within the retail sector over the perceived disparity in enforcement between domestic and foreign platforms, Louwagie announced new enforcement measures. 'I've asked for stricter controls on foreign platforms—specifically, a threefold increase in product sampling to verify compliance,' she said. 'We're also implementing full-spectrum checks on all elements involved.' She noted that, in coordination with Customs Minister Amélie de Montchalin, a new protocol would ensure systematic information sharing between customs authorities and the DGCCRF regarding incoming parcels. Louwagie emphasized that enforcement is also expanding at the European level. 'At the end of 2024, we began verifying platform compliance with the Digital Services Act,' she explained. 'A specific procedure has been initiated by the European Commission targeting Temu, and a separate investigation is underway concerning Shein. France, along with Germany and Ireland, is challenging multiple practices that violate EU regulations. Shein has 30 days to respond.' Amid calls to replicate the 2021 delisting of the e-commerce site Wish, the minister acknowledged that such action remains an option. 'Wish failed to comply with official injunctions, which led to its removal. While today's platforms often respond to enforcement measures, I'm pushing the European Commission to revise the legal framework so that platforms can still be delisted under certain conditions—even if they cooperate.' Highlighting the scale of the issue, Louwagie noted that 800 million parcels valued under €150 enter France annually, part of a broader influx of 1.5 billion parcels into the country and 4.5 billion across Europe. The stakes, she said, are high—not only in terms of consumer health and safety but also in protecting European businesses from unfair competition. She reiterated the government's support for ending customs exemptions on low-value imports. After months of scrutiny surrounding Shein's business model and its impact on the local economy, the July 3 announcement marks a significant turning point. Whether it paves the way for lasting structural change across the industry remains to be seen.
Fashion Network
an hour ago
- Fashion Network
Shein faces government crackdown in France as minister confirms ongoing investigations
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Galeries Lafayette Haussmann enjoys rapid growth, amid store revamp and tourism boom
Business at 's famed Boulevard Haussmann flagship is booming this year, amid a huge flood of tourists into the nation's capital, and a significantly refreshed retail offer. In the first half of 2025, the flagship achieved double-digit sales growth, outperforming the estimated 9% increase in tourists visiting France during the same period. Annually, some 37 million people visit the handsome Art Nouveau store, Europe's largest – 60% of them non-French, a remarkable figure when one considers that 89 million people visited France in 2024. The recent increase in traffic and business has also been driven by a substantial revamp of key floors in this luxury bazaar. 'We have worked hard on improving the customer experience and offer and consumers have reacted very positively,' stressed Guillaume Houzé, board member and director of image, over a summer lunch Thursday. Specifically, the store has expanded its space for prominent French runway brands such as Jacquemus, Lemaire and AMI, particularly in their menswear department, and has focused even more attention on their major league brands on the ground floor. Not surprisingly, the store's top-selling brands are Louis Vuitton and Chanel. In an ongoing revamp of the huge store, private salons have been added to key brands' shop-in-shops at Haussmann. 'The goal is to make the customer experience comparable to a Vuitton flagship. Right now, we believe that Vuitton's store in Galeries Lafayette Haussmann is among the top five stores of Vuitton worldwide,' noted Houzé, great-great-grandson of the store's founder Théophile Bader, who opened the debut store in 1894. Under buying director and board member Arthur Lemoine, the store has also expanded the presence of leading international labels, recently opening a striking Phoebe Philo boutique, adding Bottega Veneta and creating a 110-square-meter store for Paris' favorite new American label, The Row. It has also added the only French shop-in-shop of LVMH marque Patou, which will stage its next show this Sunday in Paris. Meanwhile, the boutique of Courrèges – thanks to the direction of the brilliant Franco-Belgian designer Nicolas Di Felice – has expanded from 20 square meters to 110 square meters. 'We want to nourish that difference in our offer, with more directional fashion, compared to other places in Paris,' explained Lemoine at a suitably Lucullan lunch in Galeries Lafayette's VIP salon. Courgette flowers stuffed in crunchy vegetables served on Andalusian gazpacho, followed by cumin-inflected grilled sea bream, washed down by a rare white Bordeaux, Smith-Haute-Lafitte. The fine menu complements the sophisticated mode available in this giant retailing complex. Familiar fixtures at major runway shows, the duo of Houzé and Lemoine are very excited about the recent debut show of Jonathan Anderson for Dior, where they sat front row. 'Personally, I thought it was formidable! We already have three Dior men's spaces, including for shoes and fashion. And cannot wait to get Jonathan's ideas for Dior in here in early January,' enthused Lemoine. A tour of the main building, or buildings – there are four large, interconnected spaces at Galeries Lafayette Haussmann, including a beautiful Art Nouveau structure topped by a glass cupola – underlined how chock-a-block they are this summer. After a couple of years where the space slowly emerged from the Covid pandemic, it is now packed, with lines outside hot brands' spaces. 'Do you know, the Christmas before Saturday, over 300,000 visited Galeries Lafayette Haussmann, which is pretty special,' marveled Lemoine, who is also gradually renewing its beauty, scent and wellness offer, even if Haussmann already has the largest beauty space in Europe. The growing traffic means that the famed flagship alone will break €2 billion in turnover in 2025, impressive numbers for a store with a total retail space of 70,000 square meters. Breaking down revenue by key categories, women's ready-to-wear and men's ready-to-wear each count for 20% of sales; leather goods and bags for 20%; watches for 10%; beauty for 5%; while gifting, books, home, tabletop and restaurants make up the final 25%. Internationally, this family-owned French institution is not resting on its laurels. Galeries Lafayette already has six large department store flagships outside of France, spreading from the Gulf to Jakarta to Shanghai. Next up, a debut store in Mumbai, where work has already begun inside an architecturally distinguished Victoria Gothic building near the central city zone of the Maidans. 'Most of the property like that is owned by the municipality, making alterations very complicated. But our building is privately owned, so we can make the sort of changes to create an exciting store,' enthused Houzé. Galeries Lafayette Mumbai, with 7,000 square meters of shopping space, will open at the end of 2026. One suspects Théophile Bader, whose bust in the VIP salon looks out at the rooftops of Paris to the July sun shining on Sacré-Cœur on Montmartre, would have been pleased.
