If you’ve got your eye on a new Hermès Birkin, Chanel, or Louis Vuitton, we’ve got news that might make you want to act fast.
On April 2, 2025, President Trump announced a 20% tariff on imports from the European Union. The U.S. government is imposing this tax on European luxury goods to address unfair trade practices, and it’s set to hit your favourite handbags hard.
What does this mean for you? Let’s get into it.
What’s All This Talk About Tariffs?
A tariff is a tax on imported goods, and it’s going to make your designer handbag even more expensive.
A quick history lesson: tariffs have been a part of global trade since the 1700s, but their role has fluctuated over the years, especially in the post-World War II era, when trade agreements sought to reduce tariffs and promote global economic cooperation.
Fast forward to 2025, and tariffs are back on the table. The U.S. government has decided to impose a 20% import tax on European goods, which will directly affect luxury items like handbags, apparel, and accessories. The aim is to create a fairer trade environment so that trade between the U.S. and Europe is balanced.
So, if you're eyeing a Hermès Birkin 25 that costs $12,100, brace yourself for a price tag that could soar to $14,500. The same goes for Chanel's 11.12 bag, which could rise by $2,160 from its current price of $10,800.
But here’s the catch: Hermès isn’t just going to absorb that cost. According to Axel Dumas, CEO of Hermès, the price increases will likely be passed on to the U.S. consumer.
So, what does that mean for you? Well, you might want to consider making your move soon, before the prices go up even more.
How Will These Tariffs Affect Luxury Fashion Houses?
The EU is home to nearly all of the top luxury fashion houses, and around 70% of luxury goods are produced there. This makes the Hermès Birkin, Louis Vuitton Neverfull, and Chanel Classic Flap susceptible to the tariff impact.
The recent announcement has already raised concerns for Hermès, Chanel, Louis Vuitton, and others. Hermès earns about 17% of its sales from the U.S. market. So, what’s going to happen to those bags? According to Axel Dumas, CEO of Hermès, the brand plans to raise prices to compensate for the increased costs. “If duties increase, we’ll increase our prices accordingly,” Dumas says.
For Louis Vuitton, the situation is a bit different. They already have two production sites in California and one in Texas, which means they’ll be less affected by the tariff compared to Hermès.
But for Hermès, which prides itself on French craftsmanship, it’s a different story.
All of Hermès' leather goods are made in France, and there’s no indication they plan to shift any production stateside. So, unless you’re planning a summer shopping spree in Paris to avoid the U.S. price hike, it’s probably best to act now if you’re looking to purchase a new Hermès bag.
Will Hermès Bags Get More Expensive?
While Hermès hasn’t officially raised prices yet in response to the new tariffs, there’s no question that a price hike is coming.
So far, the company hasn’t made any public announcements on price increases due to tariffs, but recent price hikes (across various product lines) may have already accounted for the expected increase in tariffs.
It’s clear, however, that Hermès has the ability to raise prices without significantly impacting demand.
The exclusivity of their bags, especially the Birkin and Kelly, means that their clientele is willing to pay a premium for these luxury items, regardless of price hikes. Hermès has long been able to increase prices with little resistance because of the brand’s unique status and reputation for craftsmanship
What Does This Mean for Shoppers?
As a luxury shopper, the news of upcoming tariffs and price increases can leave you wondering how these changes will affect your buying decisions. If you’ve been eyeing a Hermès Birkin, Chanel Classic Flap, or Louis Vuitton Neverfull, here’s what you need to know:
With the 20% tariffs on European imports now in effect, prices for luxury bags from these iconic brands are set to rise. Specifically, we’re looking at an estimated 6–7% increase on popular styles like the Hermès Birkin or Chanel 11.12.
The increased tariffs are likely to make many new luxury bags more difficult to justify, even for the most devoted fashionistas. However, this is where the preloved market becomes an incredibly valuable alternative. As the cost of new bags rises, the secondhand market offers an appealing solution for those looking to enjoy the same level of luxury at a more affordable price. Preloved bags maintain the same craftsmanship and design excellence as their brand-new counterparts, but without the additional tariff burden.
Preloved bags are also a great option for shoppers who may have been priced out of buying new from top brands like Chanel or Louis Vuitton. As prices for new luxury goods continue to climb, preloved options offer a way to acquire these highly coveted pieces without paying full price, making it a smart choice for budget-conscious buyers.
But perhaps the biggest draw of the preloved market, particularly for Hermès collectors, is the potential investment opportunity.
Historically, Hermès bags have held their value incredibly well, and with the new tariff-induced price increases, the resale value of preloved Hermès bags could see a significant boost. Bags that might have cost you a fraction of their original price years ago could now appreciate in value over time, making them not just a luxury item to enjoy but also a smart financial investment.
Should You Buy Now or Wait?
So, what's the verdict? Should you bite the bullet and splurge on that Hermès Birkin or Chanel Classic Flap, or should you sit tight and wait?
While nothing is set in stone yet, those tariffs are lurking, and they could raise prices by 6–7% in the near future. And with Hermès already hinting at price hikes, it’s safe to assume those price tags are going up sooner rather than later. If you’ve been eyeing that iconic Birkin, it might be the perfect time to snap it up before it costs you even more.
But hey, if you’re looking to save a little, consider going preloved. As prices for new bags rise, the preloved market is the ultimate sweet spot. Not only do you get to own that luxury bag of your dreams, but you can save a pretty penny while doing it.
When it comes to pesky tariffs, Love Luxury has your back with a curated collection of preloved Hermès and Chanel bags calling your name!
So, why wait for prices to go up when you can snag the luxury of your dreams now, without breaking the bank?
FAQs
Will Hermès Raise Prices In 2025 Due To Tariffs?
Yes, it's looking likely. Hermès has already hinted that prices will go up if the tariffs stay in place.
Are These New Tariffs Permanent?
Not necessarily! While the tariffs are in place for now, they could change as trade agreements evolve. So, it’s a bit of a waiting game, one that could make your next purchase even pricier if you're not careful.
Is It Cheaper To Buy Hermès Secondhand Now?
With the price hikes looming, preloved Hermès bags are looking like the budget-friendly choice. You get the same luxury and craftsmanship, but at a much more attractive price.
