Birkenstock has acknowledged that US tariffs imposed under the Trump administration are beginning to impact the company, but it will not pass the full cost onto customers. The German footwear brand said that while price increases are planned for this year, they will be limited and selective.
Chief Financial Officer Ivica Krolo explained that a straightforward pass-through of tariffs would require a price increase of 2.5 times the tariff cost, raising a $100 pair of shoes to $125. However, the company has decided against such a move, citing its commitment to being a 'democratic brand'.
Instead, Birkenstock will absorb the tariffs through a combination of measures, including improving manufacturing efficiency, reducing shipping costs, and renegotiating supplier contracts. Price increases will be applied on a seasonal and style-by-style basis, rather than across the board.
The company has already taken steps to mitigate the impact, including a global price increase in summer 2025 and shipping as many goods as possible from Europe before the tariffs took effect. For example, the popular Boston clog rose from $150 to $155 between May and October 2025.
Despite the tariffs, Birkenstock continues to expand, opening 30 stores in 2025 and planning another 40 this year. The company also aims to strengthen customer loyalty through a new membership programme and exclusive perks.
The tariffs were set to increase further on 1 February 2026, but President Trump backed off those plans at the World Economic Forum in Davos, providing some relief for the company.
