Starting May 1, the French company will raise prices on all product lines in the U.S. as it plans to transfer the additional fees of tariffs to its wealthy customers.
In a business with journalists, Hermes Chief Financial Officer Eric du Halgouët said: “We will completely offset the impact of these new responsibilities by increasing our selling prices in the United States from all business circles on May 1,” Reuters quoted.
Hermes has no plans to transfer production from France
The move comes as Trump’s latest 10% import tariffs followed by import tariffs in all countries and a 20% delay in hiking imports from the EU under Fortune. Hermès was determined to maintain production in France and therefore had no choice but to pass the expenses to customers. Earlier this year, Executive Chairman Axel Dumas told Bloomberg that “we are very dependent on our production,” Fortune magazine said.
Several luxury brands, including Gucci’s boss Kering, have no manufacturers, and they value the label “made in France” or “made in Italy” according to Fortune.
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Tariffs prompt fashion’s top to raise prices
According to the report, Hermès’ price increase this year has reached 6% to 7% even before the tariffs. Now, American shoppers have to pay bags that typically cost more than $10,000, and rare bags even sell for over $85,000.
FAQ
Why does Hermes raise prices in the United States?
Due to new tariffs imposed by President Trump on imported goods, including goods from Europe where Hermès produces its items.
How much is expected to increase the price?
In addition to the planned 6% to 7% growth, prices will rise further to cover the 10% import tariff.
