Louis Vuitton raises bag prices in response to US tariffs

Louis Vuitton recently announced a price increase for one of its most popular bags, the Neverfull GM, in the United States. The price of the bag has increased from $2,100 to $100, bringing it to $2,200. This 4.8% increase is a direct response to the new 10% tariff on goods from the European Union (EU).

Image/reproduction: Louis Vuitton

This increase in the price of a luxury product reflects complex trade dynamics and the pressure of international tariffs. LVMH Moët Hennessy Louis Vuitton, the conglomerate that owns the Louis Vuitton brand, has announced that other brands in the group will also have to increase their prices in the US to offset the additional costs imposed by the new taxes.

The group's CFO, Cecile Cabanis, said she believes that luxury brands such as Louis Vuitton have pricing power, which means that the increases will not drastically affect consumer demand. Louis Vuitton, which is the largest brand in LVMH's portfolio, accounts for about a quarter of the conglomerate's total revenue and more than half of its profits.

The price increase is not surprising, considering that the tariffs imposed by the US on European products directly affect the production and distribution chain of luxury brands operating in the international market. Louis Vuitton, which had sales of €1 billion last year, remains the world’s largest luxury fashion brand, with a well-established global market.

In addition, Hermès International SCA also recently announced that it would be increasing the prices of its products in the US starting May 1, following the same rationale of adapting to the new tariffs.

For luxury brands and growing brands, it is essential to have the support of specialized legal counsel to ensure that changes in tariffs and regulations are managed appropriately. Legal advice not only helps in adapting to new economic realities, but also in strategic planning of international pricing and contracts.

In times of economic uncertainty and changes in international trade policies, having the right legal advice is essential to protect your brand and ensure its competitiveness in the global market.

If your brand is also facing similar challenges or wants to better understand the legal implications of changes in the international market, contact professionals specialized in fashion law. Legal consultancy is the first step to ensuring that your brand is safe and well positioned in the face of new economic scenarios.