By Francis Petit

As the global economy faces continued uncertainties, the art market stands at a pivotal crossroads. For international fine art shippers, understanding the broader economic landscape is crucial to anticipating how shifts in economic conditions, such as inflation, interest rates, and international trade policies, will affect the market for art.

The Economic Landscape

The US economy, like many others, is currently navigating the complexities of inflation, changing interest rates, and supply chain disruptions. While monetary policy decisions are necessary for long-term financial stability, they often lead to short-term market fluctuations that can affect purchasing power, investment behaviour, and consumer confidence.

For the art market, these changes could mean reduced appetite for high-value purchases. When interest rates rise, it becomes more expensive for individuals and institutions to borrow money, leading to a potential reduction in “luxury” purchases, including art. Additionally, rising inflation can impact the disposable income of collectors, causing some to reconsider their buying habits.

Impact on the Art Market

The art market often mirrors broader economic conditions, with collectors, investors, and institutions responding to economic cues. However, the art market is unique in that it can also defy traditional economic trends. While some may view art as a safe haven during periods of financial uncertainty, others may pull back due to the increased cost of capital or a lack of confidence in the market’s stability.

At the same time, art as an asset class continues to hold appeal for long-term investors, particularly as inflation erodes the value of traditional investments. For fine art shippers, this means an evolving landscape where demand may be more unpredictable but still significant. In a global art market, understanding the nuances of local economies, alongside broader trends, are critical to forecasting market shifts.

Tariffs and Global Trade

One of the most immediate factors influencing the movement of art across borders is the issue of tariffs.  As Georgina Adam wrote in The Art Newspaper (5 Dec 2024), President Trump’s threat of 10%-25% tariffs on imports could prove devastating for a market that, in 2023, represented 42% of global art sales.  The US has implemented and adjusted tariffs on various goods in recent years, and these duties can directly impact the cost of shipping art internationally.  Artworks, often classified under luxury goods, are not immune to the broader trade policies, which can result in increased costs for galleries, collectors, and museums. For international fine art shippers, navigating these tariffs becomes an essential part of managing costs and ensuring the smooth transport of works of art.

In a rapidly shifting economic landscape, international fine art shippers such as Gander & White must stay agile. Understanding the broader economic trends, including inflation, interest rates and tariffs will enable companies to better serve their clients and adapt to market fluctuations. As art continues to be a sought-after investment, a careful balancing of economic realities with the unique nature of the art market will define the future of international art shipping.