Luxury stocks in Europe took a hit on Thursday following the announcement of new tariffs by U.S. President Donald Trump, which targeted goods from the European Union and Switzerland. The European Union and Switzerland were hit with tariffs of 20% and 31% respectively, both being significant markets for luxury products. According to JPMorgan analysts, Swiss watchmakers like Richemont and Swatch Group are likely to face the most pressure due to high import duties, as they already operate on narrow profit margins. Richemont saw a 4% drop, while Swatch Group fell by 4.3% at 0715 GMT. Pandora, a jewelry maker, also experienced a decline of around 13% to its lowest point in over a year due to a 36% tariff on products from Thailand, which JPMorgan noted as its primary sourcing country. Other luxury companies like Burberry, Kering (owner of Gucci), and LVMH also saw declines of 4.3%, 3%, and 2.9% respectively.