H&M foresees price hikes due to U.S. import tariffs, says American consumers will suffer

Investing.com -- The CEO of H&M (ST:HMb), a fast-fashion retailer, has indicated that the increase in import tariffs by U.S. President Donald Trump will likely result in higher prices for American consumers. The company is currently adjusting its supply chain to accommodate new trade barriers.

H&M reported earnings today and its shares were up by 1.3% in Stockholm trading by 10:58 GMT.

H&M’s main manufacturing hubs are China, which has already been subjected to an additional 20% tariff on imports by Trump, and Bangladesh, which is among the nations at risk of the so-called "reciprocal" tariffs Trump plans to announce on April 2.

The United States is H&M’s second largest market in terms of sales, and the retailer is expected to raise prices to offset the effect of tariffs.

H&M CEO Daniel Erver expressed his concerns in an interview, stating, "We feel at the end of the day, it will come at the cost of the consumer."

He further added that H&M strongly supports global trade on fair and equal terms, and believes that tariffs do not foster global trade and its development.

H&M is closely watching and preparing for tariffs, although Erver described these as a "moving target" due to the uncertainty regarding which nations Trump’s announcement will target next week.

Erver also mentioned that the company is taking steps to shift production to markets that are less affected by tariffs, where they can obtain a product of similar quality, although he did not specify which countries.

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