The world of Hermès, made of fine leather, impeccable craftsmanship and six-figure desires, is preparing to face a new challenge: the duties imposed by the Trump administration. The French group has announced a price increase exclusively for the U.S. market, effective May 1, to offset the 10 percent duty that came into effect in April.
This was announced by Eric du Halgouët, executive vice president for finance at the French fashion house, who reassured markets, “The increase only affects the United States, where the duties apply. The other markets will not be affected.”
A targeted decision, but one that does not go unnoticed, especially considering that Hermès has just surpassed LVMH in market capitalization, becoming–at least for now–the world’s largest luxury company, an achievement that, however, does not reflect the reality of revenues: Hermès’ annual sales are still less than a fifth of that of the giant led by Bernard Arnault.
In concrete terms, what will it mean for a wealthy American customer to buy a Hermès bag? A ‘Birkin 30’ in Togo leather, which currently hovers around $12,000, could easily exceed $13,000 with the application of the new duties. For limited-edition or exotic leather models, the price hike could mean thousands of dollars more.
These are figures that do not frighten the most exclusive clientele, but which represent a clear signal: even luxury is not immune to the dynamics of geopolitics.
However, Hermès is not alone. Should U.S. tariffs rise or be maintained for a long time, the entire European fashion industry could be affected. Luxury brands, from Chanel to Dior, could be forced to revise price lists or reconsider their production system. Some are already talking about strategic relocation or a growing interest in markets such as Asia, the Middle East and Africa, where demand is growing, and trade barriers are less aggressive.
The latest data shows that luxury is slowing down but remains solid. In the first quarter of 2025, Hermès reported an 11 percent increase in sales in North and South America, which account for 17 percent of total sales. Globally, growth stood at 7 percent, a slower pace than the previous quarter’s +17.6 percent. The lowest performing categories were perfumes and watches, analysts reported. Despite a slight decline in the stock market (-1.3%), the brand continues to enjoy an untouchable reputation, supported by solid demand and a strategy that combines desirability and exclusivity.
Indeed, today, buying a Birkin is not just a matter of status: it is also a declaration of belonging to a world that, while touched by global dynamics, continues to dictate the rules of beauty. And the impression is that if the price goes up, for those who can afford it, the object of desire only becomes even rarer—and therefore, more valuable.
