The art market has firmly entered a phase where political and economic factors are increasingly influencing client decision-making. As an art advisor, staying informed, adapting strategies, and communicating transparently will be critical to not only protecting our clients’ interests but to helping collectors find new opportunities in a changing market.
The Art Market Liaison team recently tuned into an insightful webinar organized by the art software company Artlogic – Tariffs, Trade & the Art Market: What Art Professionals Need to Know Now – hosted by Edouard Gouin, CEO and co-founder of the global shipping company Convelio.
With the U.S. announcing steep tariffs on Chinese imports in early April – including categories that could impact artworks, antiques, and collectibles – trade tensions are once again reverberating across the global art market. While we know that art remains largely exempt from tariffs, the ongoing trade war may hit many sectors adjacent to art and has already made reverberations across an already soft art market.
Uncertainty and fear of looming economic crises has already shown to slow cross-border transactions, prompting collectors to rethink purchases or shift trade routes. We’re keeping an especially close eye on this as we approach an important moment in the art world calendar – New York Art Week, with no less than five fairs taking place across the city – including Frieze New York, TEFAF, Independent, NADA, Spring Break, and Esther II – and the May auctions at Christie’s, Sotheby’s, and Phillips.
Even as the trade war changes almost daily (noting the recent 90-day tariff reduction between the U.S. and China), global economic tensions continue to escalate and have no doubt caused uncertainty in the art market. We wanted to share some key insights and actionable advice specifically for collectors and other art advisors navigating this shifting landscape over the weeks, months – and maybe years! – ahead.
Here are Art Market Liaison’s top takeaways on tariffs:
1. Stay Alert to Shifting Tariff Policies
The political environment is moving fast. Our team at Art Market Liaison is tracking tariff announcements closely and keeping our clients informed about how added costs might impact both new purchases and upcoming sales. Art advisors are here to help simplify the complexities of shifting economic and political policies, so clients can stay focused on making informed decisions in the art market and build (or sell) their collection.
2. Rethink Shipping and Logistics Planning
We pride ourselves in having contacts with global suppliers around the world, helping to streamline shipping and logistics planning. Find an experienced art advisor you trust to source reliable fine art logistics companies to explore alternative shipping routes, bonded warehouses, and other pre-clearance opportunities to mitigate challenges brought on by trade tensions. Our top advice is to build in longer timelines to accommodate possible custom delays, especially when planning to shift works on the secondary market, and explore alternative trade routes that might occur fewer additional fees.
3. Focus on Domestic Opportunities When Possible
Now may be the perfect moment to shift your focus from international blue-chip galleries and “name brand” art fairs to the vibrant art scene right in your own backyard. Strengthening relationships with local galleries, attending regional art fairs, and exploring private sales can offer compelling opportunities – often with fewer logistical complications brought on by international tariffs. You might not only sidestep added costs but also uncover emerging talent and build deeper connections within your local art community. As Miami natives, that’s a win-win to us!
4. Act Quickly on Pre-Tariff Opportunities
If you’re considering buying internationally, act quickly. We’re working on expedited timelines with clients to help advise collectors on finalizing purchases before costs rise even more. Take advantage in pauses in tariffs and continually monitor the news to determine the best opportunity to buy – or sell. Some galleries and auction houses are also offering financing options to offset tariff risks. Let a trusted art advisor help you with this process or negotiate installment plans to ease pressure on liquidity.
5. Tighten Your Tracking
This isn’t just a tip useful in the context of the ongoing trade war but for all collectors, any time. Always keep detailed documentation of art works, whether buying or selling. But in this case, the important element to know is where an artwork was created and its point of origin as that will have the greatest impact on tariffs. Savvy collectors are asking more questions up front, demanding thorough documentation, and working closely with advisors like us to minimize exposure to surprise costs and legal risks.
6. Opportunity Lies in Disruption
Market disruptions can create opportunities for nimble collectors. Remember COVID? While tragic and hugely disruptive, the global pandemic strengthened online art sales with the quick adoption of online viewing rooms, digital art fairs and enhanced technology, making art more accessible to wider audiences. We’re on the lookout for motivated sellers or undervalued markets gaining new attention due to trade barriers – and we’re always willing to share what we’ve learned to the benefit of your collection!
Reach out to our team for further advice and insights.
