H&M CEO Daniel Ervér has remarked that American consumers will face increased expenses due to President Donald Trump’s decision to raise import tariffs.
In an interview with Reuters on Thursday, Ervér stated, “The new trade barriers are forcing us to make changes to our supply chain.”
Currently, H&M’s primary production hub is in China, where Trump has already imposed an additional 20% tariff on imports. Furthermore, several other countries, including Bangladesh, are at risk of facing “reciprocal tariffs,” which are expected to be announced on April 2.
Since the United States is H&M’s second-largest market, the company may be compelled to raise product prices to manage the impact of the tariffs.
“Ultimately, these costs will be borne by consumers. We believe in fair and equal trade, but tariffs are not conducive to improving global trade,” Ervér added.
The CEO also mentioned that H&M is closely monitoring the U.S. tariff situation and preparing accordingly. However, uncertainty remains regarding which countries will be affected in Trump’s upcoming announcement. Ervér described the current situation as an “ongoing process.”