City broker Deutsche Bank has downgraded the target share price for a host of luxury companies as the impact of Trump’s tariffs starts to filter through analyst forecasts.

The broker rated Richemont, LVMH, Moncler and Kering a ‘Hold’, downgrading the share price for each company.

“The direct impact of the tariffs is not a huge headwind in our view… However, weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand,” analysts said.

Hermes was the only company to receive an upgrade, with Deutsche Bank changing its recommendation from a ‘Hold’ to a ‘Buy’ and increasing the target share price from €2,220 to €2,550 (£1,911 to £2,195).

Consumer discretionary analyst at Quilter Cheviot Mamta Valechha said Hermes would benefit from its “strong pricing power and higher-end positioning” despite the inevitable single-digit price increases.

“However, how the US (and global) luxury consumer responds to potentially reduced global economic growth remains unknown,” Valechha added.

There was a significant sell-off in luxury markets after Trump announced tariffs on April 2.