H&M CEO Predicts U.S. Tariff Hike Will Drive Up Consumer Prices

The actions taken by U.S. President Donald Trump to increase import tariffs are expected to raise prices for American consumers, according to H&M’s CEO, who spoke on Thursday as the company adjusts its supply chain in response to new trade restrictions.

H&M’s primary manufacturing locations include China, which has already been subjected to an additional 20 percent tariff on imports, and Bangladesh, a country that may face “reciprocal” tariffs that Trump is set to announce on April 2.

The United States ranks as H&M’s second-largest market in terms of sales, and the retailer may need to raise prices to offset the effects of these tariffs. “Ultimately, we believe this will be at the expense of the consumer,” H&M CEO Daniel Erver stated in an interview with Reuters.

“We strongly advocate for global trade conducted on fair and equitable terms, and we believe that tariffs do not promote the advancement of global trade,” he added.

H&M is actively monitoring and preparing for the potential impact of tariffs, although these are a “moving target” due to the uncertainty surrounding which countries will be affected by Trump’s upcoming announcement, Erver noted.

“We are taking steps to relocate production to countries that are less impacted by tariffs, wherever feasible, while ensuring we maintain product quality,” he concluded, without disclosing specific countries.