Hermès Raises Prices in the U.S.: A New Turning Point for Luxury in 2025
The year 2025 marks a pivotal moment in the world of luxury. On Thursday, April 17, Hermès announced a new price increase across all its product categories in the United States, effective May 1, 2025. Unlike previous adjustments, which were typically linked to inflation or production costs, this decision is driven by a major external factor: the introduction of a 10% U.S. import tariff on luxury goods.
But what does this mean for devoted Hermès enthusiasts and the global luxury market? Let’s dive into a pricing shift that is redefining the balance between accessibility and exclusivity.
📈 Price increase to offset customs duties
In response to rising trade tensions, Hermès will fully offset the impact of the new U.S. tariffs by adjusting its retail prices accordingly. This increase comes on top of a 6% to 7% price hike already implemented at the beginning of the year—despite Hermès’ usual practice of limiting adjustments to just once annually.
“This will be a complementary price increase […] allowing us to neutralize the impact,” said Éric du Halgouët, the group’s Chief Financial Officer.
While the precise percentage of the new increase was not disclosed, the objective is clear: protect the brand’s profitability while maintaining its premium market positioning in the U.S.
🎯 A strategic financial move
Facing rising import costs, Hermès is embracing strategic transparency. This price increase is part of a broader financial approach to support continued global growth, with the brand reporting a +8.5% revenue increase in the first quarter of 2025.
In the Americas, sales surged by +13.3%, reaching €695 million, despite a challenging start to the year marked by store closures in Los Angeles and Florida due to wildfires and rare snowstorms.
💼 Is luxury becoming more exclusive?
Will this price increase discourage American consumers? Unlikely. Demand remains high, and Hermès continues to attract clientele drawn to exquisite craftsmanship, heritage value, and exclusivity. The updated pricing could even further elevate the desirability of its iconic bags, such as the Birkin, Kelly, and Constance.
At the same time, this trend may boost activity in the luxury resale market, where rare Hermès pieces often sell for a premium—sometimes even above retail—for the most coveted models.
