If you’re a luxury goods consumer living in the U.S., you’ve probably heard of the newly imposed tariffs on leather goods from France, Italy, and Spain. The brands you know and love are responding by adjusting their prices in the States. That means a purse you’ve been eyeing could cost hundreds more in a matter of months, and history shows luxury houses rarely roll prices back once they increase.
What Are Tariffs and How Do They Apply to Handbags?
A tariff or duty is a tax imposed by a government on imported goods. Authorities use it to generate revenue, protect domestic industries, or respond to trade disputes. In the designer bag market, tariffs apply to products crossing borders from the manufacturing country to the importing country.
Luxury handbags imported into the United States fall under specific Harmonized Tariff Schedule (HTS) codes that categorize them by material and purpose. These codes determine the applicable tariff rate. For example, leather handbags have a different tariff rate than textile or synthetic handbags. Rates can vary depending on current trade agreements.
Impact on Imported Goods
The U.S. administration enacted multiple trade actions in 2025:
- In April, the administration imposed a universal 10 percent tariff on nearly all imports, plus additional country-specific rates beginning April 9 [Tax Foundation].
- By July, the U.S. negotiated a deal with the EU that capped most EU goods at a 15 percent tariff, which is down from the earlier threat of 30 percent. However, some categories are subject to higher rates if excluded from the deal [Reuters].
- On July 12, the administration announced a new 30 percent tariff on EU and Mexican goods to take effect August 1, 2025 [The Budget Lab].
- The 39 percent tariff rate on Swiss goods, including luxury watches, is one of the highest imposed [BBC].
According to The White House, higher tariffs may take effect on dozens of countries by August 1, 2025, unless they negotiate and ink new trade deals [CNN].
What Tariffs Cover and How They Affect Luxury Shoppers
The new tariffs apply to leather handbags, wallets, travel bags, and other accessories imported from France, Italy, and Spain. These tariffs affect almost every European luxury house, because they produce many of their handbags in their respective countries. These brands include Hermès, Chanel, Louis Vuitton, Gucci, Prada, Bottega Veneta, Dior, Celine, Loewe, and many others.
For shoppers, the main points are:
- Scope of Brands
Nearly every major European luxury house incurs higher import costs on leather handbags and small leather goods shipped to the United States. The impact spans privately owned and publicly traded companies, from long-established maisons to newer labels with a growing U.S. presence.
- Price Adjustment Cycle
Most luxury brands adjust their retail prices on a fixed schedule, typically once or twice yearly. When tariffs increase, the additional costs filter into retail pricing during the subsequent adjustment cycle. Depending on the timing of the policy change, U.S. consumers can see the effect as early as the following seasonal collection.
- Product Range
The current tariff classifications cover a broad set of leather goods imported into the United States. In addition to handbags, these duties apply to wallets, cardholders, passport holders, briefcases, travel cases, and even leather straps sold separately or as replacements for specific handbag models. Certain small leather goods, such as coin purses and key holders, fall under the same codes. This scope affects both high-demand accessories and low-volume specialty items sold through luxury retailers.
Common Misunderstandings About Tariffs and Handbags
It is worth mentioning and clarifying that:
- Tariffs are not a luxury-specific measure. They apply across product categories.
- Tariffs are not fixed. Rates can change quickly due to reforms in trade negotiations.
- Imported secondhand goods are not exempt. Buying a pre-owned designer handbag straight from overseas can be subject to tariffs.
- Retailers cover all tariff costs. Most brands and retailers pass at least part of the additional expense to the buyer through increased prices. Some may temporarily offset costs, but sustained tariff hikes typically lead to adjusted pricing.
Understanding these points removes much of the uncertainty surrounding how tariffs apply to designer handbags.
How Designer Bag Consumers Can Reduce Tariff Costs
Higher tariffs mean higher prices for luxury bags. Hermès has already announced its decision to implement a 10 percent price increase, and other brands are expected to follow.
Fortunately, there are ways for consumers to limit (or even avoid) the added expense:
1. Consider pre-owned handbags from local sellers
The resale market offers current and past-season models without triggering new import costs. While pre-owned prices have risen in response to higher retail prices, they may still cost less compared to buying the same item brand-new at tariff-adjusted prices.
2. Buy domestically
Purchase handbags already in the States instead of overseas to avoid paying additional import duties. The importer, usually the brand, will have already paid the applicable tariffs and included the costs in the listed retail price. Buying products already in the country eliminates the risk of unexpected customs charges.
3. Schedule purchases around price adjustments
Most luxury brands review their prices once or twice a year. If a tariff increase is announced, consumers may avoid the immediate impact by purchasing before the next scheduled adjustment. Monitoring brand pricing trends and tariff updates can help determine the best time to buy.
4. Think about the full cost of buying abroad
For many jetsetters, a trip to Paris or Milan isn’t complete without shopping at their favorite brand’s boutique. However, while a designer bag straight from its origin country may be less expensive upfront, many forget to calculate local taxes, potential VAT refunds, exchange rates, and U.S. customs duties upon re-entry. Ignoring these costs is a reason why some shoppers overspend instead of saving money.
A Final Word of Advice for Consumers
Tariff rates and trade deals can change based on ongoing negotiations. The U.S. administration may alter rates and enforcement dates with little notice, so buyers should check the latest tariff updates before finalizing a purchase.