US tariffs are behind a 20% plunge in the share price of S&P/ASX 300 Index (ASX: XKO) retail stock Cettire Ltd (ASX: CTT) today.

Cettire shares hit a three-year low of 64 cents after the company released a statement on the US tariffs.

The ASX retail stock has retraced a little to be trading at 68 cents per share, down 15.1%, at the time of writing.

Let's take a look.

ASX 300 retail stock tanks 20% on new US tariffs

Cettire is an online retailer that sells luxury goods by European brands, including Hermes, Prada, and Chanel, to a global market.

The US has announced a 20% tariff on imports from European Union countries into the US from 9 April.

Cettire said approximately 41% of its total gross sales in 1H FY25 were European Union-manufactured goods sold to US customers.

However, not all Cettire's imports may be subject to this new tariff.

The company pointed out that there has been no immediate change to the US de minimis exemption for EU-manufactured goods.

(However, the US has ended the exemption for Chinese goods.)

This means shipments below US$800 will remain exempt and unaffected by the new US tariffs.

Cettire's average order value in 1H FY25 was US$514.

Cettire said the new US tariff on European goods would hit many luxury retailers.

The Company notes that changes to US tariffs on overseas imports will likely impact the majority of online and bricks and mortar luxury retailers, as a significant proportion of luxury items are manufactured in the EU.

European handbags and clothing to cost US consumers more

Many economists have argued that Trump's tariffs will end up costing US shoppers more.

Cettire's statement bears this out, with the company noting that European manufacturers have already flagged price increases for US customers to offset the impact of the US tariffs.

Cettire said:

Cettire is currently assessing the full implications of these tariff changes on the Company and its global operations, noting that several major luxury brands have indicated they would seek to increase pricing of luxury goods in the US market to mitigate possible tariff changes.

Management said it began preparing for new US tariffs last year.

Cettire began identifying strategies to prepare for and mitigate potential changes to the US tariff regime throughout calendar 2024 and the first quarter of 2025.

The Company's localisation strategy has underpinned a continued broadening of the geographic revenue base, which Cettire expects to continue.

ASX 300 retail stock price snapshot

The Cettire share price has fallen almost 80% over the past year.