Hermès raises prices on iconic $10,000 bags, blames U.S. tariffs for the luxury price bump hitting high-end shoppers

Hermès, the French luxury brand, is increasing prices on its highly sought-after bags, scarves, and other luxury accessories in the United States due to president Donald Trump's most recent round of tariffs, as per a report.

Starting May 1, the French company will raise prices on all its product lines in the United States, because it plans to pass the additional costs from tariffs to its affluent customers, reported Fortune.

During an intreview with reporters, Hermès CFO Eric du Halgouët said, “We are going to fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines,” quoted Reuters.

Hermès Has No Plans to Move Production from France

The move comes in the wake of Trump's latest 10% import tariff on all countries, and had delayed hikes of up to 20% for imports from the European Union, as per Fortune. Being steadfast in wanting to maintain production in France, Hermès did not have a choice but to pass on the expense to its customers. Earlier this year, executive chair Axel Dumas had told Bloomberg, “We’re very attached to our production where it is,” quoted Fortune.

According to Fortune, several luxury brands do not have a manufacture in the United States, including Gucci owner Kering, and they value having “Made in France” or “Made in Italy” tags.

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Tariffs Prompt a Price Hike at the Top End of Fashion

Even prior to the tariffs, Hermès was already planned a 6% to 7% price hike this year, as per the report. Now American shoppers have to pay even higher on bags that typically cost over $10,000, with the rare ones even selling for more than $85,000, according to Fortune.

Jefferies analyst James Grzinic said that, “We expect the group to benefit from far superior pricing power versus peers,” as quoted in the report.

FAQs

Why is Hermès raising prices in America?
Because of new tariffs imposed by President Trump on imported goods, including those from Europe where Hermès produces its items.

How much are prices expected to increase?
In addition to an already planned 6% to 7% increase, prices will go up further to cover the 10% import tariff.