JAKARTA – French company Hermès (HRMS.PA) has announced it will fully pass on the cost of US import tariffs to its affluent American customers. The move comes in response to tariffs introduced amid trade tensions triggered by US President Donald Trump's policies.

As quoted by Reuters, Hermès Chief Financial Officer Eric du Halgouet said that starting 1 May, prices for Hermès products across all business lines in the United States will be increased.

“We will fully offset the impact of these new tariffs by raising our retail prices in the United States,” he said at a press conference on Thursday (17/4).

This increase will come on top of the company’s regular annual price adjustments, which this year stand at around 6–7%. Hermès is relying on its status as one of the world’s most exclusive brands to maintain customer demand despite higher prices.

In its latest financial report, Hermès posted sales of 4.1 billion euros (equivalent to around USD 4.66 billion) in the first quarter of the year, marking a 7% increase.

However, the figure fell short of analysts’ expectations for 9.8% growth, according to consensus data from VisibleAlpha cited by HSBC.

The shortfall in sales was largely due to weakened demand in the Chinese market. Nevertheless, Hermès still outperformed its rivals, including LVMH, which recently reported a 5% decline in its fashion and leather goods division.

Du Halgouet also noted that despite geopolitical uncertainty creating volatility in financial markets, the company has not yet observed significant changes in consumer spending behaviour in the United States.

“Sales in that market are still showing double-digit growth,” said Halgouet.

To maintain product exclusivity, Hermès continues to limit production growth to around 6–7% per year. (DK/ZH)