First of all, the good news. While the intense season of art fairs and New York auctions begins, the Fine Arts seem to be spared new American commercial rates. Thanks to the historical laws cited in the last legislation of the White House, the works are protected as “information material”, an exemption anchored in the first American amendment, which covers freedom of expression.
However, there remains a deep discomfort in an artistic market already weakened on the impact of the reference rate at 10% on other imports and on the emergence regime after the current break of 90 days. “It's so painful,” said Hugh Gibson, director of Thomas Gibson Fine Art in London, before the show at Tefaf New York Fair for this year (May 9-13). “I don't know how a sender or someone is intended to implement all of this.”
Many gallery owners, sender, customs brokers and artistic advisers quickly had to become experts on the niche legal code which is 50 USC 1702 (B). Adam Green, an advisor based in Dallas, said: “I almost drew a night. I had customers who had recently bought at London auction and who were being shipped (in the United States). Everyone was trying to understand it. ” In the end, he said: “It has become obvious that because of this strange clause, works – and elements such as CD -ROMs and microfiches – were exempt”.
This is now the basis on which he and the rest of the trade are currently based. But the current administration of the White House is not known for its consistency and the running driving that the prices of President Trump inflicted on the markets means that all the advice is accompanied by a daring health warning. The historic code “would be complicated to relax”, explains Edouard Gouin, managing director and co-founder of the Group of Logistics of Fine Arts Convelio, but its advice to the customers of the gallery are that “the last days have shown that everything that remains possible”. As Nigel Dunkley, co -director of the Union Pacific gallery in London, put before the show at Frieze New York: “Who knows if Trump will slap the 300% tariffs tomorrow? Is Wild, Wild West.”
While the fine arts seem exempt, other areas of trade – including furniture, antiquities and wider collectibles – are apparently not under current directives. This could have an impact on Tefaf New York, whose 91 exhibitors include seven design galleries and five other people specializing in antiques or jewelry, mainly from the United Kingdom and Europe. The director just Leanne Jagtiani is, like many, in a model of detention with the exhibitors: “We will continue to monitor the situation concerning Tefaf New York and its wider implications,” she said in a statement. An e-mail of the Frieze New York directors, sent to exhibitors in April, advised: “As the prices are subject to changes in the weeks and months to come, we strongly encourage you to be in contact with your sender designated as soon as possible for more advice”.
Meanwhile, the Maritime Company DHL warned of “several days delays” and has suspended its commercial shipping for consumption in the United States worth more than $ 800, the threshold at which customs clearances are now necessary (previously $ 2,500). And the exemption on art integrated into the fabric of American legislation does not apply in reciprocal reactions. “There are growing speculations according to which if the United Kingdom or the EU Ripost, works of art are likely to be included,” explains Green.
Such uncertainty has already wreaked havoc. “From what I can say, there is an exemption around art, but I think customers may not know,” says Dunkley. One of his offers, on a work worth $ 90,000, has already been canceled, “with an excuse based on prices,” he said. The international gallery owner Thaddaeus Ropac says that the prospect of prices has not changed the content of the work they bring to Frieze, but, Ropac said: “We did not know if we were to pay prices on arrival, for example, so we reduced the amount we send.”
Others postpone transit plans until the last minute possible, in the hope of more clarity. For sender, “at the moment, there are no huge impact on our business, but we would lie if we said that it was not going to have an effect,” explains Gouin.
In the meantime, the gallery owners have dropped rabbit holes in terms of possible ramifications. In Tefaf, Gibson takes work by the American sculptor John Chamberlain – some of his crushed metal works – and paintings and works on paper by the French Dubuffet Jean. “If there are prices, which might not have it, Chamberlain is OK because the works have been made in the United States and come from his succession,” he said. “But what's going on with Dubuffet?” One of his works is currently in the United Kingdom, having been bought in the United States, but the artist was from France. So could there be a 20%price? Or 10%? And when would it apply? When we bring the works? If so, there would not be many empty stands (at art fairs). world.”
More broadly, there are concerns concerning the economic effects of the undulations of the volatile situation, which range from paralysis to a total recession. In addition to the reference rate to 10%, the climbing of the United States with the trade war with China means that there are currently sure of at least 125% in each direction. Companies with global supply chains will feel pain and have no idea what will follow. “Some collectors (United States) are in the clothing and import sector of Vietnam (potential rates 46%). I know that someone has a sushi restaurant and gets Japan fish (24%). Macro problems will have a significant effect on the art market, “said Green.
Even for those who are not directly affected, the backdrop is dark, including instability in stock markets worldwide. “We tried to contact customers, but they have other things in mind,” said Ropac in April. “People are not in mood to buy art, they are nervous about the situation.” Meanwhile, American policy beyond the economy, such as Trump's ideological position against “unlocking” in the creative industries, plays in the mind of many on the art market.
Nevertheless, as always, there is a certain degree of optimism in the events of May, with gallery owners identifying a few silver liners. The lower dollar “could make our prices more attractive,” said Dunkley, which benefited sales of art in the past. From her smallest expedition, Ropac says that “at least my new environmental sustainability chief is happy, she always tries to make me reduce our footprint”. Green says that the spirit of collaboration, as evidenced by the Covid-19 pandemic, was intense, “with everyone on WhatsApp groups trying to understand what was going on”.
Green also identifies an opportunity to buy, for those who are ready to do so. “People were already more cautious, but there is still a lot of high quality demand,” he said. In addition, others say that art could be one of the rare goods without tariff in circulation. It could be hanging on the straws, but before the Bellwether sales season, you just have to continue.
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