Navigating the Impact of Tariffs on the Art Market
GABRIEL OROZCO (B. 1962), Samurai Tree 6s, tempera and gold leaf on canvas, 35.43 × 35.43 in, Executed in 2011. Presented by Kurmanzutto gallery, Mexico City.
The recent implementation of sweeping tariffs by the Trump administration is reshaping the global art market, introducing significant challenges for galleries, collectors, and artists. At Artamour Advisory, where we specialize in sourcing modern and contemporary works across borders, these developments are particularly relevant as they affect cross-border transactions and the cost of acquiring art. Below, we explore the key implications of these tariffs and how they may influence collectors' strategies.
What Are the Tariffs and Who Is Affected?
The new tariffs include a 25% duty on imports from Canada and Mexico, a universal 10% tariff on most imports, and higher rates for specific countries such as China (34%) and the European Union (20%). These measures aim to address trade imbalances but have created uncertainty in the art world. Collectors importing artworks from affected countries may face significant price increases—potentially up to 25% added to the purchase price.
For example:
A $500,000 painting from Europe could now cost $600,000 after tariffs.
Galleries in Canada and Mexico are particularly concerned about losing U.S. buyers due to these inflated costs.
Impact on Cross-Border Art Transactions
The tariffs are disrupting the international flow of artworks—a cornerstone of the modern art market. Galleries are reconsidering participation in U.S.-based art fairs due to increased shipping and exhibition costs. Additionally:
Retaliatory tariffs from countries like Canada and China further complicate trade.
The cost of materials such as lumber for crates and aluminum for shelving has risen, affecting logistics for transporting artworks.
For collectors working with Artamour Advisory, this means navigating higher costs when sourcing works internationally or exploring alternative avenues such as private sales or direct acquisitions from artists.
Challenges for Galleries and Collectors
The uncertainty surrounding exemptions for artworks under tariff codes adds another layer of complexity. While some categories may be exempt under Chapters 97 and 49 of the Harmonized Tariff Schedule, this has yet to be confirmed. Galleries face tough decisions:
Absorbing tariff costs to maintain sales volume.
Passing costs onto collectors, which risks discouraging purchases.
Collectors importing artworks themselves must prepare for additional expenses that could significantly impact their budgets.
Opportunities Amidst Turbulence
Despite these challenges, there are ways to adapt:
Focus on Local Markets: Supporting U.S.-based artists or galleries can mitigate tariff-related costs.
Leverage Private Sales: As auction houses see increased activity in private transactions, this avenue offers potential savings compared to public auctions impacted by tariffs.
Explore Emerging Artists: With smaller galleries seeing growth in sales under $250,000, collectors may find value in acquiring works from rising talents unaffected by high-end market volatility.
Conclusion: Strategic Collecting in a New Era
The trade war and tariffs are reshaping how collectors approach acquisitions. At Artamour Advisory, we are committed to helping clients navigate these complexities—whether sourcing locally or internationally—and identifying opportunities amidst uncertainty. By staying informed about geopolitical developments and adapting strategies accordingly, collectors can continue building meaningful collections while minimizing financial risks.
Contact Artamour Advisory to discuss how these changes might influence your collection strategy.