The Price of Prestige: How Hermès Is Responding to Tariffs

On April 17, Hermès confirmed they will raise prices on all their US offerings starting May 1 to counteract the White House’s 10% tariff on imported goods. For most brands, this would just mean tacking on a fee. But Hermès isn’t like most brands.

What differentiates Hermès from other luxury labels is how deliberately they control product availability. Their workshops in France produce a limited number of each item, often with custom leathers, colors, and stitching. The result is a waitlist culture, a customer service model built on exclusivity, and a clientele willing to spend tens of thousands for the mere chance to be offered the item they want.

Now, factor in a 10% tariff that Hermès refuses to eat. Unlike fast fashion retailers who absorb import costs or offer discounts to keep customers loyal, Hermès does the opposite. They raise prices without hesitation—and because their loyal customer base treats these goods as collectibles or even investments, demand rarely falters.

Many analysts expect a short-term sales spike as shoppers rush to beat the May 1 hike. But that’s unlikely to last, especially as US consumers face broader cost-of-living increases.

To understand the impact of these price hikes, you must understand the mythology behind Hermès—especially their crown jewels, the Birkin and Kelly bags. These handcrafted leather icons are not simply bought. They’re earned.

At any Hermès boutique, you won’t find a Birkin on display. You can’t just walk in and ask to see one. More often, you’ll be approached by a Sales Associate (SA) who knows your shopping history—perhaps even has a sense of your style—and might whisper that something “special” has arrived. If you're lucky, you’ll be ushered into a private room and offered a single bag. Sometimes, it’s not even the one you want, but declining it could risk losing future offers.

And if that sounds theatrical, it is. That’s the Hermès way. Scarcity isn’t a bug—it’s a feature. But for many devotees, it’s also what makes finally acquiring one so magical.

Still, not every customer is chasing a six-figure Birkin. For many, a $450 silk twilly scarf or a $100 lipstick is the first step into the Hermès universe. These “entry-level” items serve as accessible luxuries—status symbols in their own right that bear the unmistakable craftsmanship of the house.

However, with the coming tariff-induced price hikes, even these pieces will cost significantly more. Executive VP of Finance Eric du Halgouët confirmed during an April 17 earnings call that Hermès would “fully offset” the new tariff costs by raising prices in the U.S. across all product lines—from perfumes and watches to shoes and ready-to-wear.

If you’ve been eyeing that H belt buckle or hoping to grab a silk carré to tie around your bag, now may be your last chance at the current price point.

If you’ve been saving up for your first piece of Hermès—a wallet, a fragrance, a pair of Oran sandals, a Birkin, or a Kelly—this is your cue: buy now or expect to pay more later. The price hike isn’t just a concern for high-net-worth collectors; it hits the entire spectrum, including those who just want a little orange box.

And as tariffs loom larger and economic uncertainty deepens, even the thrill of the hunt may come with a steeper price tag.

With Hermès, exclusivity is the norm. But soon, that scarf you used to buy “just because” may feel a little more out of reach—not because it’s rare, but because it’s simply more expensive.