Hermes Jacks Up US Prices to Fight Trump Tariffs as Birkin Costs Soar!

 Hermes International SCA announced plans to raise prices on its luxury goods in the United States by 5-10% starting June 1, 2025, to counter the impact of U.S. President Donald Trump’s 10% tariff on all imports, effective April 14, 2025, the company confirmed in a statement to Bloomberg. 

The French fashion house, which surpassed LVMH as the world’s most valuable luxury group with a €230 billion market cap, aims to protect profit margins on its Birkin and Kelly handbags, which retail for $10,000-$200,000, amid a projected 15% cost increase for imported materials, per Reuters.

CEO Axel Dumas emphasized maintaining brand exclusivity, noting Hermes’ 12% U.S. sales growth in 2024, driven by 80,000 annual store visitors in New York alone, per company data. The price hike, affecting leather goods, scarves, and jewelry, follows a 3% global increase in January 2025, but U.S. consumers face the steepest adjustment due to tariffs, which added $2 billion to import costs for European luxury firms, per HSBC estimates. 

Rivals like Gucci are mulling similar moves, though LVMH plans to absorb costs, per WWD. U.S. retailers warn of reduced demand, with 60% of luxury buyers citing price sensitivity, per Bain & Company.