Italian Fashion House OTB Considers U.S. Price Hikes Amid Tariff Concerns

Italian fashion conglomerate OTB is currently analyzing potential price increases in the United States as it braces for possible trade tariffs. The group, which owns high-end brands like Diesel, Jil Sander, and Maison Margiela, is preparing for the financial impact that new U.S. import duties could have on its profitability.Ubaldo Minelli, the CEO of OTB, addressed the matter during a press conference on Monday held to unveil the company’s latest sustainability report. Speaking on the sidelines of the event, Minelli emphasized the company’s proactive approach to tackling the potential challenge.”We are evaluating, brand by brand, possible actions to reduce the impact of these duties,” Minelli said. “Simulations indicate that, in order to balance the impact on profitability, we would need to increase prices in the U.S. market by around 8 to 9 percent overall for the group.”The statement highlights growing concern within the European luxury fashion industry over looming trade tensions.

A number of high-end European brands are now weighing the possibility of raising prices in the American market if tariffs are implemented. Prada, another major Italian luxury brand, is reportedly conducting similar evaluations. Meanwhile, French fashion house Hermès announced last month that it would fully pass on the effects of any new tariffs to its American consumers.For OTB, known formally as Only The Brave, the United States represents a crucial market. Its premium brands have a strong foothold in the American retail landscape, and any pricing shift could influence consumer demand and brand positioning. The anticipated 8–9% hike is significant, particularly in a price-sensitive environment, and could reshape purchasing behavior in the U.S.The group is approaching the issue with strategic caution, undertaking detailed internal simulations and scenario planning. “We are not rushing to decisions,” Minelli noted. “We are carefully assessing how different levels of duties would affect each brand and how we can best respond without compromising our long-term customer relationships.”At the same press conference, OTB chairman and founder Renzo Rosso also took the opportunity to comment on the group’s long-anticipated stock market debut. Rosso reaffirmed that the company still intends to go public, though the timeline remains contingent on broader market conditions. “We are ready, and we will move forward when the time is right,” he said.OTB has built a reputation for bold and unconventional fashion statements, and its commitment to sustainability and innovation continues to be a central pillar of its strategy. The group’s 2024 sustainability report, released at the event, detailed advancements in eco-friendly production practices, material sourcing, and corporate social responsibility initiatives.

Despite the external challenges posed by geopolitics and trade policies, Rosso expressed confidence in the group’s resilience. “We’ve weathered many storms,” he remarked. “Our focus remains on creativity, craftsmanship, and staying close to our customers — wherever they are in the world.”As the global fashion landscape navigates an increasingly complex economic and regulatory environment, brands like OTB are being forced to adapt quickly. The looming U.S. tariffs present yet another hurdle for European luxury companies already balancing inflation, shifting consumer trends, and sustainability demands.For now, American shoppers of Diesel, Jil Sander, and Maison Margiela might not see immediate price changes. But if the proposed trade tariffs become a reality, the cost of European luxury in the U.S. could soon climb — with OTB among the companies leading that adjustment.