Luxury Prices Are Rising: How Tariffs Are Fueling a Pre-Owned Boom
Tariffs push luxury prices higher: New trade barriers and past price hikes are straining brands and raising costs for jewelry, watches, and designer goods.
Pre-owned market gains momentum: Shoppers turn to authenticated resale for better value and sustainability amid rising retail prices.
As the prospect of renewed Trump-era tariffs looms, the luxury market is bracing for significant changes. From designer handbags to fine jewelry and high-end watches, luxury items are poised to become even more expensive—both to produce and to purchase.
Luxury brands that once freely navigated global supply chains are now facing steep import duties and rising costs. These new trade dynamics are reshaping the pricing, production, and purchasing patterns of luxury goods in the U.S. market.
Luxury Price Hikes: A Pandemic Legacy Meets New Tariffs
During the pandemic, surging demand and limited supply drove luxury brands to raise prices sharply. Chanel and Dior, for instance, increased prices by over 50%, while Hermès—maker of the Birkin bag—opted for a more modest 20% hike. These pricing decisions are now under fresh scrutiny.
With Trump’s tariffs returning, brands that already pushed prices aggressively may struggle to raise them further without hurting demand. Hermès, having shown restraint, is better positioned to pass along future tariffs without major pushback. In contrast, brands like Dior, already experiencing a slowdown, may have to absorb some of the costs to retain customers.
A Closer Look at Jewelry: A Global Industry Under Pressure
Jewelry is uniquely vulnerable to tariffs due to its highly globalized supply chain. Much of the world’s jewelry—whether high-end or affordable—is produced or processed in countries like India and China, now subject to steep tariffs.
These increases will likely be passed on to consumers through higher retail prices, which may dampen demand—especially as jewelry is a discretionary purchase. With inflation already pressuring household budgets, shoppers may postpone purchases, seek out more affordable pieces, or turn to pre-owned jewelry for better value.
The impact goes deeper than pricing. Small and medium-sized manufacturers, particularly in India, could face financial strain or closures due to tighter margins. The industry may also see job losses as manufacturers scale back operations, and companies will be forced to rethink their supply chains—shifting production to countries with lower tariffs or trade-friendly zones. This disruption adds uncertainty to the market and increases volatility in pricing, production planning, and long-term investment.
The Rise of Pre-owned Luxury
As tariffs and rising production costs drive up retail prices for new luxury goods, more consumers are turning to the pre-owned market for high-end watches, jewelry, and handbags. Pre-owned luxury offers an attractive alternative—providing access to premium craftsmanship and iconic brands at more accessible price points. With inflation and global trade tensions contributing to price hikes, budget-conscious shoppers are becoming more comfortable purchasing authenticated, gently used items that hold long-term value.
Beyond affordability, the resale market aligns with growing consumer interest in sustainability and circular fashion. Buyers are increasingly aware of the environmental and ethical impact of overproduction and are seeking smarter, more responsible ways to shop. At the same time, sellers benefit too—unused or outdated luxury items can be converted into cash or traded for new investments, especially as demand for pre-owned luxury continues to rise. In this evolving landscape, resellers and consignment platforms are well-positioned to thrive, offering both transparency and value at a time when the traditional retail market faces growing pressure.
Reference:
Jewelry Appraiser Denver.com: How New Tariffs Could Reshape the Jewelry Industry in 2025 and Beyond
