Using price increases, production changes, and cost-cutting strategies to preserve their margins, French businesses that are exposed to the US market are responding to the growing tariffs.
Beginning on 1st May, Hermès, the French luxury company best known for its silk scarves and Birkin bags, will increase the cost of all of its products in the US. The step is meant to offset the impact of the additional 10 per cent tariffs, said Chief Financial Officer Eric Halgouët. The size of the hikes was not disclosed by the luxury shop Hermès.
At Kering, the parent company of Gucci, CFO Armelle Poulou stated that they are confident in their ability to protect margins by implementing price increases.
Bernard Arnault, CEO of luxury giant LVMH, called on European leaders to settle trade disputes amicably, warning that if tariffs rise, LVMH would be compelled to expand its manufacturing operations in the US.
