French luxury fashion house Hermès has announced it will raise prices in the United States starting May 1, 2025, in order to offset the 10% tariffs imposed by President Donald Trump on goods imported from the European Union. The company disclosed the decision during a conference call with analysts.
The price hike will apply across Hermès’ entire product range in the US and will be in addition to the brand’s regular annual adjustments, which have already amounted to 6%–7% globally in 2025. These new measures aim to preserve the company’s profit margins amid rising import costs.
Although Hermès has not yet felt a direct financial blow from the tariffs, a slowdown in growth is already being felt. In the first quarter of 2025, the company recorded a 7.2% increase in sales at constant exchange rates — a significant drop from the 18% surge during the same period in 2024.
Amid escalating global trade tensions, many luxury brands — including LVMH, Kering, Chanel, and Prada — are also under pressure. The current 10% tariff could potentially increase to 20%, posing additional risks to the European fashion industry.
At the same time, the US president has imposed a 145% tariff on Chinese imports, to which Beijing responded with a 125% levy on American goods. This will especially impact companies that rely on Chinese components or are heavily invested in the Chinese market.
Following the announcement, Hermès shares dropped 2.5% on Thursday morning, bringing the total decline for the past month to 7.3%.
