H&M CEO warns US prices may rise as Trump tariffs bite
H&M chief executive Daniel Ervér has warned that clothing prices in the US are beginning to rise
H&M chief executive Daniel Ervér has warned that clothing prices in the US are beginning to rise as Trump-era tariffs start to take effect — with pressure building across the sector as competitors react in “very different” ways.
“In the US, we are starting to see some competitors increasing prices. Some more aggressively and some more cautiously,” he said, describing the situation as “fast-moving” given repeated policy shifts from the Trump administration.
H&M has not confirmed whether it will raise prices itself, but Ervér stressed that it remains “very, very competitive” on pricing, fashionability and sustainability, adding that its broad sourcing footprint gives it flexibility to manage cost pressures.
The comments come just a day after H&M reported a 1% sales increase in local currencies for the second quarter, despite a larger-than-expected drop in revenue due to currency headwinds and rising freight and purchasing costs.
Operating profit slid nearly 17% to SEK 5.91bn (£465m), as the group pointed to ongoing investments in product, store formats and digital experience.
While Ervér acknowledged the margin pressure from higher shipping and dollar-linked purchasing costs, he added that many of these headwinds “are turning positive” heading into the second half of the year.
Still, H&M expects to increase discounting globally in the months ahead as price-sensitive shoppers continue to tighten spending in an uncertain macro environment.
The retailer is preparing to open its first stores in Brazil later this year and is rolling out new store formats to support long-term growth.
This week Nike also flagged the impact of new tariffs, saying it had already begun “surgical” price increases in the US to offset rising import duties — which could add as much as $1bn to its costs this year.
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