NEW YORK, August 5. /TASS/. German fashion company Hugo Boss AG plans to increase prices on its products globally in order to offset losses stemming from higher US import tariffs and the broader impact of trade wars, Bloomberg reported, citing the company’s Chief Financial Officer Yves Muller.

The company is set to implement moderate price adjustments across all major markets, with the exception of China, where it is currently facing declining demand for premium apparel. Muller noted that Hugo Boss has only applied minimal price increases over the past four to five years, creating a cushion that allows the upcoming price hikes to remain acceptable for consumers.

According to the CFO, the US market accounts for around 15% of Hugo Boss’s annual sales. Approximately half of the company’s products destined for the United States are manufactured in the European Union, which is now subject to comprehensive 15% tariffs imposed by Washington. An additional 5% of goods come from China.

Bloomberg reported that the current management team at Hugo Boss is working to reposition the brand toward a younger demographic and chart a new growth trajectory through strict cost control. However, these plans encountered headwinds in 2024 due to weakening consumer demand in key markets.

On July 27, European Commission President Ursula von der Leyen and US President Donald Trump reached an agreement under which Washington would impose a 15% tariff starting August 1 on approximately 75% of European goods imported into the United States, instead of the 30% blanket tariff the White House had previously threatened. In return, the European Commission pledged to fully ban all imports of Russian energy resources and committed to purchasing US oil, gas, nuclear equipment, and fuel worth $750 bln, as well as investing $600 bln into the US economy.