Strategic Changes of Global Luxury Brands in Response to the Tariff Policy of the Trump Administration

최근 세계 경제가 변화하고 있는 가운데, 고급 브랜드들이 미국 내에서의 가격 조정에 나서고 있습니다. 트럼프 행정부의 새로운 관세 정책은 이러한 변화의 배경이 되고 있으며, 주요 럭셔리 브랜드들은 이를 반영한 전략을 모색하고 있습니다. 루이비통과 에르메스와 같은 브랜드들이 제품 가격을 인상하는 등 소비자에게 직접적인 영향을 미치는 결정들을 내리고 있음을 주목할 필요가 있습니다. 이제 구체적인 방법을 아래에서 확인해 보도록 하겠습니다.

Strategic Changes of Global Luxury Brands in Response to Trump’s Tariff Policy

In April 2025, the new 10% tariff imposed by President Trump made price adjustments in the U.S. market inevitable. Consequently, major luxury brands such as Louis Vuitton and Hermès are adopting strategies that involve raising product prices in the U.S. and passing the tariff burden onto consumers.

Louis Vuitton Raises Average Prices by 4% in the U.S. Market

Strategic Changes of Global Luxury Brands in Response to Trump's Tariff Policy
Strategic Changes of Global Luxury Brands in Response to Trump’s Tariff Policy

Louis Vuitton has increased the price of its popular Neverfull GM bag in the U.S. by 4.8%, adjusting it to $2,200. This move reflects the recently imposed 10% tariff, although some products have not seen any price changes, which raises the possibility that they are manufactured at production facilities within the U.S. Analysts believe that Louis Vuitton’s pricing power serves as a foundation to effectively absorb the shock from tariffs.

Hermès Plans to Raise Prices on All Products in the U.S. Starting May 1

Strategic Changes of Global Luxury Brands in Response to Trump's Tariff Policy
Strategic Changes of Global Luxury Brands in Response to Trump’s Tariff Policy

Hermès plans to increase prices on all products in the U.S. market starting May 1. This decision comes in response to the 10% tariff imposed on products imported from the European Union (EU), and Hermès has stated that it will fully offset the cost increases due to tariffs. Hermès reported a 7.2% increase in sales in the first quarter of 2025 compared to the previous year, although this figure is a slowdown compared to the 18% growth rate of the previous quarter.

Pricing Strategies of Luxury Brands and Consumer Reactions

Louis Vuitton and Hermès are implementing price increases based on their strong brand value and loyal customer base. This strategy aims to maintain profitability by passing the cost increases due to tariffs onto consumers. However, it remains to be seen how these price increases will affect consumer demand in the long term.

Conclusion

Trump’s tariff policy presents new challenges for global luxury brands. Louis Vuitton and Hermès are adopting strategies that involve passing the tariff burden onto consumers through price increases, which are actions based on the brands’ pricing power and consumer loyalty. It is essential to observe how these strategies will impact consumer demand in the future and how other luxury brands will respond.

Related keywords: Trump tariff policy, Louis Vuitton price increase, Hermès price adjustment, luxury brand strategies in the U.S. market, tariff response strategies

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