Hermès Raises U.S. Prices on Birkin Bags and Scarves After Trump Tariffs [2025 Update]
Hermès, the French luxury powerhouse best known for the Birkin and Kelly bags, has announced it will raise prices in the United States starting May 1, 2025. The change comes in direct response to the Trump administration’s new 10% import tariffs on European luxury goods.
Collectors and shoppers will soon pay more for Hermès’ iconic handbags and signature silk scarves. The company’s leadership made it clear the hikes will “fully offset” the added tariff costs. This move aims to protect Hermès’ margins and maintain its reputation for scarcity and prestige.
With U.S. prices set to climb, American consumers will feel the effect in boutiques and the resale market. The luxury sector is watching closely, as these shifts could influence buying habits and competition across the high-end market.
Background: Trump Tariffs and the Global Luxury Market
Starting in 2025, luxury brands are facing a new wave of tariffs set by the U.S. government under the Trump administration. These changes affect not only household names like Hermès, but the entire world of high-end fashion, watches, and accessories. As the rules shift, luxury houses are recalibrating their pricing, strategy, and communication with clients. Let's break down the key details of these tariffs and how they influence the U.S. luxury market.
Photo by Markus Winkler
Details of the 2025 U.S. Tariffs on Luxury Goods
The 2025 tariff package is aimed squarely at premium European goods, a move that has sent shockwaves through designer showrooms and boardrooms. Here’s what’s changing:
- Tariff Rates:
- A 10% tariff applies to most European imports.
- Fashion and leather goods face hikes as high as 20%.
- Swiss watches, famous for their craftsmanship and expense, could be taxed up to 31% as they enter the U.S. market.
- Timeline:
- These tariffs take effect in May 2025, impacting all shipments arriving after the start date.
This is part of an ongoing cycle of trade tensions between the U.S. and its trading partners. The measures follow years of trade disputes and are seen as a response to EU policies that the Trump administration says disadvantage American exports.
Luxury houses like Hermès, Chanel, and Louis Vuitton have braced for these measures for months. As reported by Reuters, the new tariffs are set to reshape the market, pushing brands to evaluate costs, supply chains, and long-term plans. The pressure stretches far beyond Hermès, touching all corners of the luxury sector and stirring concern among investors and shoppers alike.
How Tariffs Influence Pricing Strategies in Luxury Fashion
When tariffs rise, luxury brands have tough choices to make. Unlike mass-market retailers that might spread out extra costs, brands like Hermès almost always pass increased import expenses directly to customers. They do this for several reasons:
- Protecting Margins: Luxury houses operate on tight, controlled margins to keep profits high without overwhelming the market with product.
- Preserving Prestige: High price tags aren’t just about covering costs—they signal exclusivity, status, and timelessness. Lowering prices would erode that aura.
- Strategic Positioning: Accepting smaller profits could risk brand perception, while sudden price jumps may impact demand. Most brands prefer steady, justified increases.
Hermès, for example, announced it would “fully offset” the costs of tariffs by lifting prices across its range of handbags, scarves, and other accessories. This isn’t just math—it’s strategy. A price hike can underscore scarcity and elevate the sense of luxury around the brand’s iconic products.
Other European houses are likely to follow suit, according to analysis from The New York Times, as the whole sector seeks to maintain its elite status. Brands know their loyal customers value heritage, craftsmanship, and image as much as the product itself.
The new tariffs intensify the dance between governments and global brands, making pricing not just a financial issue, but a statement about identity, value, and ambition on the international stage. For shoppers, this could mean fewer “bargains” and a firmer floor on the price of luxury in American boutiques.
Hermès' Price Increases: What's Changing in 2025?
Hermès is known for its steady, controlled approach to pricing. Each year, loyal clients expect a modest uptick—usually explained as the cost of exclusivity. But the 2025 U.S. price hikes are anything but routine. Triggered by the Trump tariffs, these increases go beyond Hermès’ usual adjustments and underline how much the global market can shape what you pay at the boutique.
Photo by Emre Can Acer
Impact on Birkin and Kelly Bags, Scarves, and Other Hermès Essentials
Hermès’ most iconic pieces are set for fresh sticker shock in 2025. Handbags—the Birkin, Kelly, and Constance—have all seen visible jumps, as have silk scarves and classic leather goods.
Here’s a close look at the new shifts:
- Birkin and Kelly bags: Prices for these signature handbags have risen between 6% and 7% on average. A Birkin 25 in Togo leather now starts just above $11,400, while a Kelly 25 has moved up to around $10,900.
- Other leather goods: Many styles, from the Evelyne to the Picotin, saw increases in the 4% to 6% range. The Bolide and Lindy bags were not spared, with most sizes costing hundreds more than last year.
- Silk scarves: The classic 90cm carré now retails for about $560 instead of last year’s $530.
- Accessories: Bracelets, belts, and small leather items recorded 3% to 5% jumps, keeping pace with the headline items.
These percentage hikes reflect a determination by Hermès to fully offset tariff costs while maintaining its aura of exclusivity. The company keeps tight control over supply—and is famous for limiting production to keep demand high. That control means price increases translate almost instantly across boutiques, sustaining the waitlist mystique around the brand’s most coveted items.
For the latest, detailed pricing by bag and accessory, check guides like the annual review from Madison Avenue Couture.
Comparison to Previous Hermès Price Changes
Hermès clients usually see standard, modest price bumps year after year. Most annual adjustments fall between 6% and 7%, often justified by production costs, inflation, or evolving materials. In normal years, these hikes are steady enough to be part of luxury shopping’s “new normal.”
The 2025 increase looks similar at first—but it’s layered with a new goal: neutralizing the 10% U.S. import tariff. This means:
- The increases hit faster and harder than in some recent years.
- They are supplementary—Hermès has openly said the increases are a direct response to tariffs, not just routine adjustments.
- Unlike in Europe or Asia, the hikes are focused on the U.S. market.
According to CNBC’s coverage, Hermès is clear: the hikes are meant to “fully offset” new trade costs, not simply inch prices up as before. This could set a precedent—other brands may follow with similar tariff-related surges if trade tensions stay high.
Historically, the only other comparable surges in Hermès prices were linked to currency swings or global supply chain disruption, not policy changes. This makes 2025’s adjustment a real outlier—one driven by forces outside the rarefied world of fashion, proving just how global economics can touch even the most exclusive luxury brands. For in-depth tracking by model and year, explore the yearly updates compiled at PurseBop.
