Luxury goods company Hermès will increase prices for its products in the United States starting May 1, aiming to offset the impact of President Donald Trump’s universal 10% tariffs on luxury items. The move is targeted at the American market only and does not affect other regions.
Hermès overtook French rival LVMH as the world’s largest luxury firm by market capitalization earlier this week. Known for its Birkin and Kelly handbags, colorful scarves, and jewelry, the company will raise prices to cover the tariffs imposed on it.
Executive Vice President Eric du Halgouët said the price increase is aimed at fully offsetting the impact of the 10% tariff imposed by the White House in early April.
The decision comes as US consumers face higher prices for various items due to the impact of tariffs. Hermès reported a slowdown in sales growth, with revenue increasing by just 7% on a constant currency basis overall in its first quarter. Despite this, analysts described the results as “robust.”
Source: https://www.cnbc.com/2025/04/17/herms-to-hike-us-prices-for-iconic-bags-and-scarves-due-to-tariffs.html