According to reports by Global Times, the French luxury brand Hermès said on April 17 that it would pass on the burden of tariffs in the United States to American customers to offset the impact of the tariffs.

"We will increase the sales prices across all our business lines in the United States starting May 1st to fully offset the impact of these new tariffs," said Eric du Hussargue, CFO of Hermès. The company had mentioned in February that it might raise prices due to tariffs.

Hermès released its first-quarter financial report on April 17. The report showed that revenue for the quarter was 4.13 billion euros, slightly below market expectations of 4.16 billion euros. Leather goods business grew by 10% on a constant exchange rate basis, close to market expectations of 10.8%. In the Asia-Pacific region, revenue grew by only 1.2% on a constant exchange rate basis, far below market estimates of 4.02%.

Previously, LVMH, the world's largest luxury group, also announced price hikes to counteract the impact of U.S. tariffs.

On April 14th, LVMH Group's first-quarter financial report showed that the company's sales fell by 3% in the first quarter, far below analysts' expected growth of 2%. During the earnings call after the release of the financial results, LVMH management stated that the group would consider raising prices to cope with U.S. tariffs. The group expressed confusion regarding President Trump's announcement to delay the implementation of some tariffs for 90 days.

A recent study released by Yale University Budget Lab showed that the tariff measures implemented by the U.S. government this year have temporarily pushed up overall price levels by 2.3%, equivalent to an average loss of purchasing power of $3,800 per household this year. Among them, the impact on clothing and textile prices will be particularly noticeable.

California Governor Gavin Newsom announced on April 16th that he would sue the Trump administration over the issue of tariffs. He criticized the Trump administration's abuse of tariff policies as "illegal" and causing severe chaos and destruction to the U.S. economy. Previously, the Trump administration had been sued by several small American businesses over its tariff policies. Many ordinary Americans also expressed concerns about the economic outlook.

Eric Maldonado, a Los Angeles resident, told Xinhua News Agency in an interview that the so-called "reciprocal tariffs" would have catastrophic effects on ordinary people. "This is the biggest tax hike on the American people. We will almost have to pay more for everything in the near future. This will affect the entire family budget," he said.

Source: Global Times Editor: Ding Fenglin

Original Article: https://www.toutiao.com/article/7494487797500428851/

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