Hermès, the French luxury icon known for its coveted Birkin bags, has announced plans to raise prices on all products sold in the United States starting May 1. The move comes in response to new tariffs introduced by President Donald Trump, aimed at imports from around the world.
Speaking to Business of Fashion, Hermès’ Finance Chief Eric du Halgouet confirmed the decision. “We are going to fully offset the impact of these new duties by increasing our selling prices in the United States across all our business lines,” he stated. The company had already raised prices by around 6% earlier this year as part of its regular annual adjustment, which helps maintain the exclusivity of its leather goods.
Tariffs and Slowdown Weigh on Luxury Sector Growth
The price increase follows the release of Hermès’ first-quarter financial results, which fell slightly short of analysts’ expectations. The brand reported a 7.2% rise in sales, reaching €4.1 billion ($4.66 billion USD) in the three months ending March 2025. Analysts had projected a 9.8% increase, especially after Hermès surpassed LVMH to become the world’s most valuable luxury company earlier this month.
Despite the looming tariffs, du Halgouet noted that U.S. shoppers continued to show strong interest, with double-digit sales growth reported in the region during the first quarter. However, the exact scale of the upcoming price hikes remains undisclosed, leaving fans of the brand to speculate on how much more they’ll need to pay for their next Birkin or Kelly bag.
Last week, Trump imposed a 10% duty on global imports, delaying higher tariffs for 90 days. If fully enforced, the new measures could push tariffs on European fashion and leather goods as high as 20%. Luxury brands like Hermès now face the challenge of protecting their profit margins while navigating changing trade conditions.
Luxury’s Resilience Faces New Tests in 2025
The tariff shock comes at a delicate time for the global luxury market, which has started to slow after a post-pandemic spending boom. High inflation, global economic uncertainty, and a real estate slump in China — one of the luxury industry’s biggest markets — have all dampened consumer enthusiasm.
So far, Hermès has outperformed many of its peers, avoiding sharp declines in demand. But the brand continues to face headwinds, especially in China, where spending has yet to rebound to pre-pandemic levels. As the luxury sector braces for more economic turbulence, Hermès’ latest U.S. price hike could signal broader shifts in how high-end brands navigate global trade tensions and shifting consumer trends.
