April 17 (UPI) — Handbags, scarves and other goods sold in the United States by French luxury brand Hermes will cost more in May due to tariffs imposed by President Donald Trump.
Representatives of the brand announced Thursday they are hiking prices only in the United States due to the impact of the 10% tariff that Trump imposed on goods produced by European Union members, including France.
“The price increase that we’re going to implement will be just for the U.S. since it’s aimed at offsetting the tariffs that only apply to the American market,” Eric du Halgouet, Hermes’ executive vice president for finance, said while announcing first-quarter results to analysts Thursday.
Hermes products include popular Birkin and Kelly handbags, prices for which often start at $20,000 for a clutch and go well over $100,000 for larger, high-end bags, the New York Post reported.
The 10% price hike would take effect on May 1 and add $2,000 to the cost of a $20,000 handbag and $10,000 for luxury items that cost $100,000.
The Paris-based luxury brand is the world’s largest producer of luxury goods based on market capitalization. Its scarves generally cost hundreds of dollars, and Hermes also produces watches, jewelry, perfume, shoes and make-up.
Hermes reported an 11% increase in sales in the Americas during the first quarter of 2025. The Americas accounted for about 17% of Hermes’ global market share during the first three months of the year.
The luxury brand reported a 7% increase in revenue growth, which is less than an anticipated increase of between 8% and 9% and down from a 17.6% revenue growth rate during the last three months of 2024.
Analysts estimate the luxury goods market will experience less of an impact from Trump’s tariff policy than other retailers because Hermes customers have greateer wealth.
Trump on April 2 announced a global tariff of at least 10% on foreign-produced goods sold in the United States but on April 9 paused implementation for most nations for 90 days after numerous requests from countries to negotiate trade terms.
The president said he imposed the tariffs to improve the nation’s economy and add more jobs by addressing trade deficits and high tariffs on U.S.-produced goods that are sold in other nations.