Luxury retailer Hermès announced Thursday that it will raise prices for all products in the U.S. in response to President Trump’s tariffs, according to a report by the New York Post.
How much does it cost to be a Birkin Bag now?
The move comes amid U.S. sales and ongoing trade tensions. Their expensive clutch ranges from about $20,000 to six-digit range, which means that the current 10% tariff on EU goods filings could increase by about $2,000.
The Paris-based company, which produces most of its products in France, will raise prices to compensate for any damage to Trump taxes, said Eric du Halgouet, executive vice president of finance at Hermès, said.
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To give leaders time to negotiate, President Trump first threatened the 27-member group with 20% duty, but he later lowered it to 10% of 90 days.
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Hermes reported weak U.S. sales in the first three months of the year ahead of Trump tariffs that came into effect on April 3. Then came the price increase. According to the company’s data, sales increased by 7.2% in the first quarter, which is less than the company’s 18% increase.
According to French President Emmanuel Macron, the 90-day pause “sends a signal that opens the conversation” but warns that it is a “fragile” pause.
According to analysts, Hermes maintains pricing power and continues to outperform luxury competitors, which makes it look more capable of dealing with tariff tightening than many competitors.
Its first-quarter revenue was $4.69 billion, up from $4.33 billion the previous year. However, revenue is only a little less than the $4.7 billion estimated by analysts.
According to the luxury clothing company, its expansion in the Americas is “particularly supported by solid momentum in March”.
Analysts warn that the massive shopping madness in the U.S. is caused by consumers who are eager to buy things before the tariffs take effect and are unlikely to happen again next month.
“Despite global economic, geopolitical and monetary uncertainty, the organization is an ambitious goal of growing at a constant exchange rate,” Hermas said in a press release.
Meanwhile, President Trump’s favorite Italian Prime Minister Giorgia Meloni will travel to Washington on Thursday, becoming the first European leader to meet with the president since the EU announced EU tariffs.
The EU hopes that Meloni may be able to negotiate lower interest rates for trading groups in 27 countries.
FAQ
Why is Hermes’ prices rising in the United States?
Hermès is raising prices to compensate Donald Trump’s 10% tariff on European imports.
How much more does a Birthkin bag cost today?
Prices may increase by $2,000 or more depending on the item.
