Hermès to Raise U.S. Prices in Response to New Tariffs

Editor’s Note: When we first published this article, we stated that Hermès would increase U.S. prices by 10% to offset the new tariff. However, it’s important to note that the 10% tariff applies to the declared import value of goods—figures that are not typically disclosed publicly. As such, the actual impact on retail prices may vary. We have updated the article to reflect this nuance more clearly.

On January 6th, Hermès kicked off 2025 with a price increase for many markets, with the U.S. seeing an average rise of 7%. The timing aligned with expectations, as annual adjustments are typical for the brand. On April 17th, Hermès confirmed plans to raise prices in the U.S., effective May 1st, citing recently imposed tariffs as the reason for the adjustment. The price adjustment follows new import tariffs on luxury goods entering the U.S.

WWD and other outlets reported the news. Head of investor relations for the brand, Carole Dupont-Pietri, shared with WWD, “The increase of price will be across all the different metiers.” This increase is only slated to affect the US market, with Dupont-Pietri further sharing, “It’s aimed at offsetting the increase in tariffs that only applies to the American market, so there won’t be price increases in the other regions.”

Hermès is the first major luxury bag brand to formally announce a price increase in response to the newly implemented tariffs. Industry observers anticipate that other brands may follow suit.

New Hermès 2025 Prices Starting May 1st

Some analysts had speculated that the luxury sector’s high margins might allow brands to absorb tariff-related costs. However, Hermès has clarified that it will pass the additional 10% cost on to consumers rather than absorbing it internally.

The declared value of each item at import is a key factor in determining the tariff amount. While estimates suggest this value could be approximately 20-30% of the retail price, the exact percentage may vary depending on the item and its classification under U.S. Customs regulations.

The new prices, effective May 1st, will reflect the impact of the 10% import tariff. However, the specific declared values used for tariff calculations are not typically disclosed publicly, making it challenging to ascertain the exact basis for these price adjustments.

The increase will apply across the board, impacting all items sold in Hermès U.S. boutiques. Below, we share a chart with current confirmed prices and the highest potential price that could be passed onto the consumer (10%). Keep in mind, we will wait to see what Hermès decides to do with a declared value, which will impact the new retail price of each item.