5 Luxury Brands Raising Prices With or Without Tariffs
Written by
Madeline Duley
Edited by
Rebekah Evans
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If you have a weakness for designer gear, saddle up for steeper prices. Many luxury brands have already raised prices in 2025 and the proposed 50% tariff on European steel and aluminum could push them even higher, according to Reuters. The result? Designer price tags with extra digits.
We spoke with Babak Hafezi, adjunct professor of international business at American University, to get the inside scoop on how much impact these increases — and potential tariffs — could have on the Chanel purse (and other luxury brands) you’ve been eyeing.
Luxury Buyers Won’t Feel the Pinch — But You Might
For regular luxury shoppers, these price hikes probably feel like mere pocket change.
“Many luxury and ultra-luxury clients have excess disposable income and this will not meaningfully impact their consumption,” Hafezi said. “The 10% tariff can be easily absorbed by the high- and ultra-high-end industries.”
But for everyone else, the impact may have a trickle-down effect elsewhere. “We’ll see the impact more in marketing spending and special events,” Hafezi said.
Sticker Shock Isn’t New
While tariffs may be new in 2025, luxury price increases have been in the works for a while.
“Prices on luxury items have been increasing by over 7% per year since 2021,” Hafezi said. “The price increases have been driven by high demand, material inflation and a push to further drive exclusivity.”
In Recent Years, Luxury Sales Have Been Dwindling
While luxury was in high demand post-pandemic, the need for designer products has cooled significantly in the past year.
“In late 2024 and into 2025, nearly all luxury brands — except for Hermes — suffered from lower earnings,” Hafezi said. “A credit crunch is driving this because of high interest rates, historic high debt on credit cards and job losses in the white-collar market.”
5 Luxury Brands Raising Prices — Tariff or Not
Below is a closer look at five major brands that have already raised prices this year.
Chanel
Chanel has steadily increased prices in recent years and 2025 is no exception
“Chanel increased the costs by 10% in March, before tariffs were announced,” Hafezi said.
Just look at the Medium Classic Flap Bag. This bag sold for $5,800 in 2019, according to Sotheby’s. Now? It’s $10,800 on Chanel’s website.
Rolex
Don’t expect Rolex to switch to plastic watches anytime soon.
“Rolex had increased costs by 1% in January and another subsequent 5% in May on steel sports watches,” Hafezi said.
With stainless steel being a critical component in its watch designs, Rolex could be feeling the weight of potential steel tariffs more than most.
Cartier
Luxury jewelry companies aren’t shying away from price hikes either.
“Cartier increased prices by 5% on their watches and 8% on their jewelry in February,” Hafezi said.
Louis Vuitton
Louis Vuitton is taking a more nuanced approach, adjusting prices by category rather than across the board.
“Louis Vuitton increases prices in April (4% to 10% on Canvas and 14% on exotics),” Hafezi said.
Hermes
While some brands are standing firm against tariff-driven increases, Hermes is already adapting.
“Hermes also increased prices in January by 7% with a subsequent increase only in the U.S. of 5% to 7% in May, thus clearly this is the “tariff cost” given that it’s not international and uniform as the other price hikes are,” Hafezi said.
What Should Shoppers Do — Buy Now or Wait?
The bottom line? If you have had your eye on a luxury piece, now’s the time to swipe your card. Whether or not tariffs go through, prices on luxury pieces are climbing — and quickly.
Act soon if you want to buy, especially if the item is imported or made from European materials. Otherwise, prepare to pay steeper prices later.
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