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Germany: Luxury Sales Boom in Berlin Amid Fears of New U.S. Trade War

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Berlin, Germany Luxury bags in hand and smartphones at the ready, shoppers streamed down Berlin's Kurfuerstendamm on Monday, July 14, 2025, brushing past flagship storefronts for brands like Chanel, Louis Vuitton, and Cartier, even as Germany braced for what leaders warn could be a devastating trade blow from Washington. The summer shopping rush pulsed through the capital's premier retail boulevard, with crowds lining up outside Dior, Tiffany & Co., and Apple's glass-fronted store as seasonal sales lured in tourists and locals alike. Berlin's iconic department store KaDeWe saw foot traffic spill onto the sidewalks, with shoppers weaving between Lululemon bags and Gucci boxes beneath cloudy skies. But behind the consumer buzz loomed a political chill. On Sunday, German Chancellor Friedrich Merz warned that a threatened 30% blanket tariff on EU products, floated by U.S. President Donald Trump, would “strike at the heart" of the German export economy. In one stretch of Kurfuerstendamm near H&M and BOSS, groups of shoppers rushed across intersections, bags in tow, eager to claim markdowns and limited-time offers. Outside Deutsche Bank's branch near Zoologischer Garten, the hum of retail spending met the weight of economic uncertainty.If Trump's tariff threat materializes, economists say the impact could ripple through Berlin's luxury economy and beyond. Already weakened by supply chain bottlenecks and inflationary pressure, many retailers worry the added costs of cross-Atlantic friction could slow Germany's fragile recovery.

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