Art Market
Arun Kakar
Four months ago, Donald Trump upended the global trade order. On April 2nd, the U.S. President announced a broad package of tariffs—duties charged on imported goods—as part of what he called “Liberation Day.” In addition to a sweeping baseline tax of 10% on almost all imports, the government imposed higher rates of “reciprocal” tariffs on more than 60 countries, initially as high as 50%.
The impact of the announcement has been seismic and unpredictable, affecting everything from global supply chains to investor sentiment. Several of the U.S.’s trading partners have responded with tariffs of their own, and many are locked in the process of negotiating reduced rates with the U.S. government. Indeed, on August 1st, Trump placed new tariff rates on more than 90 countries that had failed to reach updated trade deals with the U.S.
While trading arrangements continue to be ironed out between countries, businesses around the world have been forced to adapt to a new normal in which change appears to be the only constant. The art market is no exception. Even though artworks are exempted from tariffs, the industry has been forced to contend with several ripple effects.
But while the initial announcement caused chaos and confusion, today, dealers are gaining a better understanding of the impact. Here, we break down how the art market has been most affected by tariffs, and what anyone buying art internationally needs to know.
1. Art is still exempt from tariffs—but be wary about certain materials
Courtesy of the White House / United States Government.
What is mentioned above bears noting again: Artworks are exempt from tariffs.
A fact sheet issued by the White House on April 2nd notes that articles listed in 50 USC 1702—including “artworks,” “photographs,” and “posters”—will “not be subject to reciprocal tariffs.” This remains in place, with the sole exception being contemporary artworks from China, which are now subject to a higher duty rate, according to art shipping logistics firm Convelio.
The issue for sellers, however, is that U.S. Customs and Border Protection ultimately determines these exemptions. Officials retain the right to revoke import classifications at their discretion. While fine artworks appear to be legally protected from tariff penalties, categories such as antiques, collectible design objects, and works incorporating mixed materials (like metal or wood) may not be, causing new financial and operational strains.
“There are certain materials that some artworks have which can make them more susceptible to tariffs,” said Juan Carlos Arcila-Duque, founder of The Art Design Project in Miami, who noted that his gallery ran into unexpected issues at customs with a work that contained mother-of-pearl in its materials. “Everybody is nervous when they’re trying to follow the rules of checking [customs],” he added.
The best way to ensure that works with mixed materials ships as smoothly as possible is to document them as clearly as possible. This will minimize confusion at the border. “In international shipping, documentation is everything,” said Isabela Milagre, founder of New York gallery Bossa. “If your paperwork is solid and the item is described accurately, it will clear customs properly and be taxed correctly.” She advises collectors to work with galleries that “understand shipping regulations and can offer transparency.”
2. Take extra care with design objects
Design works are now in the largest gray area for the art trade in recent months, due to changes in tariffs.
In the U.S. government’s Harmonized Tariff Schedule, an artwork is defined by factors such as originality, artistic intent, and market perception. Broadly, this means that the object has to be either an original or a limited edition work. Its primary purpose should be for aesthetic appreciation, and it is recognized as fine art through its association with reputable galleries, auction houses, and so on.
Design objects—such as sofas, cupboards, and cabinets—sit somewhere between artistic pieces and functional items, making them trickier to classify. But several galleries note that design works can fall into the exempted categories, provided that they meet the criteria and sufficient documentation can be provided.
Convelio uses the example of a famous “Sheep Bench” by François-Xavier and Claude Lalanne, the French artist duo known for their surreal design works. The work would qualify for duty-free entry if documentation shows that it is a unique edition of the design, has a primarily artistic purpose, and was sold by a gallery of repute.
3. Be wary of longer logistics and shipping timelines
With all of these additional considerations for moving artworks to and from the U.S., expect shipping to take a little longer.
“The details that are needed are so exact—if you imagine, every single shipment has to have this level of detail, this level of scrutiny, this level of description, […]it’s just taking so much more time,” said Tom Burns, COO at fine art storage firm Fortress.
He pointed to a shift in how works are being transported since Trump’s tariff arrangement came into place: Before, he said, customs paperwork would be completed while artworks were in transit with minimal hiccups. Now, he said, “nothing’s getting shipped until the paperwork is exactly right.”
Several galleries reported that the additional burdens are causing increased operational strain at a time when costs are on the rise more broadly. “The amount of paperwork involved in each shipment has practically doubled. That has a direct impact on our logistics team,” said Milagre. “We already had a team of four people dedicated to this area, but we’re now hiring an additional assistant just to help manage documentation.”
Several galleries Artsy spoke to also reported an overall decline in international collectors purchasing work that must travel to or from the U.S. due to these perceived complications. Many are also seeking clarity when it comes to understanding the specific duties and costs they may incur. “Collectors are more strategic,” said art advisor Peter Bentley Brandt. “They’re less impulsive, more attuned to logistics and risk.”
But while some collectors are pausing on buying internationally shipped work, many buyers are prepared to weather a bit of delay. “Collectors are still okay with buying something internationally…if they’re willing to wait, and it’s kind of a one-off,” Burns noted. “They’re willing to go through a little bit of heartache to get a piece that they really want.
4. If you’re unsure, ask questions
Art market players—from galleries through to advisors and logistics firms—have been tracking the implications of these tariffs more closely than most collectors. As such, they’re worth tapping for advice if you’re considering making a purchase that crosses the U.S. border.
“We’re all looking for more guidance and understanding,” said Burns. “One thing that works well for everyone is for logistics people like myself, collectors, dealers, and galleries to all be on the same page. We’re all trying to operate with the same level of understanding.”
So, seek advice if there is any cause for confusion. “Plan ahead and ask the right questions—chief among them: ‘Where is the work now?’,” said Bentley Brandt. “We’ve shifted from reacting to tariffs to preemptively positioning works where they are least exposed.” He noted a more “measured mood” in the art market at large: “Collectors are acting with greater care, asking not just what to buy, but where it is and how it moves.”
Tariffs—at some level or another—are now a more or less established aspect of international trade. As the art market continues to adapt to these circumstances, the advice for collectors is to remain prudent. “Volatility hasn’t diminished passion—it’s refined it,” Bentley Brandt observed.
Arun Kakar
Arun Kakar is Artsy’s Art Market Editor.