H&M Reports US Competitor Price Rises, Considers Tariff-Fueled Hikes

H&M is facing rising clothing prices in the U.S. due to tariffs imposed by President Donald Trump's administration, which are disrupting the fast-fashion industry reliant on imports from China, Vietnam, and other Asian countries. CEO Daniel Ervér reported that while some competitors like Zara and Shein have already raised prices significantly, H&M is currently holding prices steady to remain competitive and potentially gain market share, although it is considering price increases to offset tariff impacts. The company benefits from a flexible supply chain that allows shifting production away from high-tariff countries, helping mitigate costs. Despite these challenges, H&M's sales growth has been modest, with a slight uptick in summer demand following weaker-than-expected quarterly results, and the company plans to stay vigilant as the 90-day tariff pause with China ends in August 2025. The situation remains fluid due to changing tariff rules and uncertain consumer sentiment, with H&M monitoring competitors’ pricing strategies closely. Overall, H&M aims to balance competitiveness with rising costs amid global economic pressures and evolving U.S. trade policies.