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You are here: Home / Fashion / 9 Biggest European Brands That Announced Price Hikes Due to Tariffs

9 Biggest European Brands That Announced Price Hikes Due to Tariffs

June 4, 2025 by B Wellington

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The golden age of affordable European luxury ended in a flash, with a single announcement. On May 23, 2025, Donald Trump proposed a 50% tariff on EU goods, and some of Europe’s most iconic fashion houses instantly caved. These are the brands that survived world wars, recessions, and even COVID. 

But this time, they scrambled. Price structures that hadn’t shifted so drastically in a century were overhauled in hours. We’re not talking minor markups. These companies employ more than 600,000 people in France alone and set the global gold standard for luxury. Their price decisions will ripple from Milan to Manhattan, and some of their reactions might catch you completely off guard.

LVMH

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With a market cap north of $278.32 billion, you’d expect LVMH to shrug off tariff news. Instead, the luxury titan’s stock dropped 3% the moment Trump’s threat hit headlines, exposing even the strongest players’ fragility. The group behind Louis Vuitton, Dior, and more pulls 25% of its revenue from U.S. buyers, an uncomfortable dependency now in full view. 

Ironically, Louis Vuitton operates American factories, but even that hasn’t shielded them from tariff fallout. If the empire that invented modern luxury retail is rattled by U.S. trade policy, it signals something deeper: a structural shift that could upend the global fashion economy.

Hermès

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Hermès didn’t hedge, they went all in. In their words, they’re “are going to fully offset the impact of these new duties by increasing…selling prices in the United States from May 1,” Translation: your $10,000 Birkin could soon cost a lot more. What’s bold isn’t the markup, it’s their confidence. 

CEO Eric du Halgouet noted U.S. customers haven’t flinched, even with economic headwinds. It’s less a business decision than a luxury psychology test. Hermès is betting its clientele won’t just tolerate higher prices, they’ll embrace them. So far, they’re right. In the luxury world, scarcity and price are features, not flaws.

Balenciaga

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Balenciaga raised prices on about 25% of its products in 2025, with average hikes of around 4%, partly in response to tariffs imposed by President Trump on European imports. The move aligns with a broader strategy among European luxury houses using pricing power to cushion trade impacts. 

Kering, Balenciaga’s parent company, confirmed its brands, including Gucci and Yves Saint Laurent, are reviewing pricing policies. CEO François-Henri Pinault noted they’re prepared to adjust further. However, analysts warn that years of steep price increases may limit how much more consumers are willing to pay, challenging luxury brands navigating tariffs and shifting global demand.

Gucci

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Gucci once made luxury feel accessible. Now it’s proving that illusion was always just branding. Kering, Gucci’s parent company, saw its stock drop 5% after weak earnings, and CEO François-Henri Pinault pushed back hard on moving production stateside, calling it “nonsense.” His argument? Gucci sells culture, specifically Italian and French culture, not just clothes. 

But with U.S. sales down 21% in 2024, the brand is at a crossroads: protect its European identity or adapt to a shifting American market. A label once praised for reinvention is now clinging to tradition. It’s a bold stance, and one that could cost them.

Adidas 

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Adidas isn’t supposed to be in this conversation, but here they are. CEO Bjørn Gulden admitted they “cannot produce almost any of our products in the US,” meaning tariffs will raise U.S. prices across the board. Suddenly, your $100 sneakers may cost $130, not because they’re better, but because of trade policy. 

Adidas even pulled its financial guidance, citing uncertainty. What’s jarring isn’t just the cost, it’s the rebranding. A mass-market brand is being pushed into luxury pricing by default. It raises an uncomfortable question: how much of fashion’s value is real, and how much is just economic theater?

OTB

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You may not know OTB, but you know their brands: Diesel, Jil Sander, Maison Margiela. Now this quiet Italian fashion group is preparing 8–9% price hikes across the board. What sets them apart is their approach. CEO Ubaldo Minelli isn’t making splashy declarations. Instead, he’s evaluating “brand by brand, possible actions to reduce the impact.” 

That level-headed strategy stands out amid industry panic. In a world of mega-conglomerates and rapid responses, OTB’s methodical play might actually work better. Sometimes, flying under the radar turns out to be the smartest move when the economic weather gets unpredictable.

EssilorLuxottica

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EssilorLuxottica, the eyewear powerhouse behind LensCrafters and Sunglass Hut, generates 45% of its revenue, nearly €12 billion (~$13 billion), from North America. With 3,820 stores across the region and a longstanding reliance on Asian manufacturing, the company now faces steep U.S. tariffs, including 145% duties on some Chinese-made eyewear components. 

Executives expect “single-digit” price hikes and are actively working to diversify supply chains, a complex shift that may take years. This isn’t just about luxury goods anymore. When a company of this scale begins implementing adaptation strategies, it signals that tariffs are reshaping not just prices, but the entire global retail structure.

Yves Saint Laurent

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Yves Saint Laurent is weighing price hikes in response to new U.S. tariffs on European luxury goods. Kering CEO François-Henri Pinault confirmed the company is reassessing pricing, noting, “We know how to manoeuvre that.” Still, analysts say YSL and Gucci may move more slowly than rivals, given their broader, more price-sensitive customer base. 

In Q1 2025, YSL reported an 8% drop in sales, highlighting the economic strain and risks of pushing prices too far. While the brand aims to offset tariff impacts, it’s treading carefully, seeking to adapt without alienating core customers or undermining its competitive positioning.

Hugo Boss

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Hugo Boss is feeling the pressure from U.S. tariffs and shifting immigration policies, both of which are dampening domestic and tourist spending in its top market. CEO Daniel Grieder acknowledged that consumer appetite has “certainly diminished,” with Q1 U.S. sales slipping 1%. While the company says its tariff exposure is “well contained,” it’s adjusting sourcing strategies and exploring targeted price changes. 

Around 15% of its global revenue comes from the U.S., yet none of its production is stateside. As trade tensions persist, Hugo Boss is navigating macroeconomic headwinds while pushing forward with a broader strategic overhaul to regain momentum.

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