U.S. Price adjustments on the Horizon

Luxury consumers in the United States may soon see an increase in the price of Hermes products. According to a report from April 19, 2025, the French high-end luxury brand “Hermes plans to raise all US products in the US from next month to cope with the Donald Trump’s tariff policy.” This anticipated price hike has drawn attention to the potential ripple affect on luxury markets worldwide.

Tariffs as a Key Driver

The primary reason cited for the price increase is the impact of tariffs. “Earlier, the United States imposed a 10% worldwide tariff on Europe, including Hermes.” This tariff has increased the cost of importing Hermes products into the U.S., prompting the company to adjust its pricing strategy.

The luxury industry source noted that,”Hermes has already raised a regular price of 6-7% this year,and this time,the additional increase is to transfer the tariff -related costs to consumers and wholly resolve it.” However, the company has stated that “the price hike due to tariffs will only be applied to the US market.”

Hermes’ Pricing History and Global Strategy

Hermes’ pricing strategy has been closely monitored in various markets. The brand “broke the ‘one increase’ in Korea and raised the price twice in january and June last year.” The increases in Korea saw “the price of major bags and shoe products increase by 10-15% in January last year, and in June, the price of the popular bag model raised the average double digit.”

such moves are not entirely unexpected in the luxury sector. “Moreover, many of the global luxury companies are raising prices in a series of prices to reduce the difference in price by country due to exchange rates.” This broader trend reflects an effort to standardize pricing and maintain brand value across different regions.

Impact on the U.S. Luxury Market

The anticipated price increase by Hermes could have several implications for the U.S. luxury market. It may influence consumer behavior,potentially driving some shoppers to consider pre-owned luxury goods or choice brands. Additionally,other luxury brands may follow suit,adjusting their prices in response to the changing economic landscape. It’s important to note that luxury goods sales dipped slightly from 2023 to 2024, according to the U.S. Department of Commerce, but are still above pre-pandemic levels.

Experts note that the U.S. luxury market is heavily influenced by consumer confidence and discretionary income. Any important economic shifts could impact demand for high-end goods.

The Resale Market Prospect

As prices for new luxury goods rise, the pre-owned market is gaining traction. The original report noted that “luxury goods are the cheapest today,” and those who want to buy luxury goods at reasonable and low prices are also attracting large offline used luxury markets.”

The secondhand luxury market offers consumers a chance to purchase authenticated items at a lower price point. Online platforms and consignment shops specializing in luxury goods have become increasingly popular, providing a convenient way to buy and sell pre-owned items.

Counterargument: Is This Justified?

While Hermes attributes the price increase to tariffs and exchange rate fluctuations, some critics argue that these adjustments are also driven by the brand’s desire to maintain exclusivity and increase profit margins.The perception of luxury is often tied to price, and raising prices can reinforce the brand’s image as a high-end, aspirational product. “This year, even in the sluggish domestic demand and tariff storms, the price of luxury goods is expected to continue due to the demand to differentiate from others,” said an official of the luxury industry.

Tho, companies like Hermes also face rising costs of raw materials, manufacturing, and labor, which can contribute to the need for price adjustments. Balancing these factors is crucial for maintaining profitability while preserving brand reputation.