French companies with strong ties to the U.S. market are moving swiftly to shield their profits from the pressure of new tariffs. From luxury brands to aerospace and pharmaceuticals, top firms are adjusting with price hikes, production shifts, and cost-saving measures.

Luxury Brands Respond with Price Increases

Iconic fashion house Hermès, known worldwide for its Birkin bags and silk scarves, announced it will raise prices across its U.S. product lines starting May 1. The move, confirmed by CFO Eric Halgouët, is designed to counteract the impact of newly imposed 10% tariffs. While Hermès didn’t specify how much prices will climb, the brand’s focus on a wealthy clientele suggests it’s betting on continued strong demand.

Meanwhile, at Kering — the parent company of Gucci — CFO Armelle Poulou echoed a similar sentiment, saying, “We believe we can protect our margins through price increases.”

Furniture maker Roche Bobois has also been proactive, raising prices twice already in early 2025, once in February and again in April, ahead of the tariff rollout. Though the company hasn’t disclosed exact figures, the strategy clearly signals an effort to stay ahead of rising costs.

It’s not just luxury brands feeling the pinch. Aerospace group Safran, which supplies engines for Airbus and Boeing jets, plans to pass tariff-related costs onto customers through surcharges. Airbus itself is taking similar steps, with CEO Guillaume Faury confirming that the added costs of importing parts to its Mobile, Alabama plant will ultimately be transferred to customers.

Production Shifts: Bringing Operations Closer to Home

Beyond price hikes, some companies are rethinking their production strategies altogether. Pharmaceutical heavyweight Sanofi, which earns about half its revenue from the U.S. but only has 25% of its production there, is exploring options to expand U.S. manufacturing or deepen partnerships with local subcontractors.

Bernard Arnault, CEO of luxury giant LVMH, has urged European leaders to resolve trade tensions diplomatically, warning that higher tariffs would leave LVMH with little choice but to increase manufacturing in the U.S. The company already operates three Louis Vuitton sites and four facilities for Tiffany & Co. on American soil.

In the manufacturing sector, Groupe SEB — best known for household appliances — is taking action as well. CEO Stanislas de Gramont revealed that relocating production from China to Vietnam could help cushion the impact of rising costs, signaling a broader shift in global supply chain strategies.

Cost-Cutting Measures Take Center Stage

While most goods face a 10% tariff, imported cars are seeing an even steeper 25% hike. Although Renault stated that it won’t be directly affected, the automaker is preparing for possible ripple effects on consumer demand. As a precaution, Renault is crafting a new cost-reduction plan that might include delaying the U.S. launch of its Alpine sports car brand.

Not every company is feeling the heat just yet. Air Liquide, Danone, Orange, and Thales have all reported minimal or no immediate impact from the tariffs. Still, the broader trend is clear: French firms are adjusting quickly to a more volatile trade landscape, seeking every advantage to protect their margins and future growth.