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LVMH's Arnault lashes out at Brussels over US trade tensions
Published by Global Banking & Finance Review®
Posted on April 17, 2025
3 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 17, 2025
3 min readLast updated: January 24, 2026
LVMH CEO Bernard Arnault criticizes Brussels for US trade tensions, warning of market impacts and considering US production shifts.
By Tassilo Hummel and Mimosa Spencer
PARIS (Reuters) - European governments urgently need to ease tensions with the United States over President Donald Trump's tariffs, LVMH CEO Bernard Arnault said on Thursday, adding it would be "Brussels' fault" if no solution is found.
"European countries should try to manage these negotiations, and not leave them to bureaucrats," he told the group's annual shareholder meeting.
Without mentioning Trump, Arnault linked current market turmoil to global trade tensions and said LVMH's business would suffer.
U.S. tariffs could include a 20% charge on European fashion and leather goods and 31% for Swiss-produced watches if fully applied. Last week, Trump paused his reciprocal tariffs on most countries for 90 days, but maintained a general 10% levy.
In January, Arnault - who is France's richest man - praised Trump for boosting economic growth and entrepreneurship and referred to a "wind of optimism" after attending his inauguration.
Since then, investor concerns over the possible economic damage of Trump's trade policies have dragged LVMH's shares 36% lower, reducing the group's market capitalisation by more than 100 billion euros ($114 billion).
Sector rival Hermes overtook LVMH as France's most valuable company this week. Around half of the LVMH's shares are owned by the Arnault family.
MADE IN THE USA?
To try to lessen the impact of U.S. tariffs, Arnault repeated on Thursday that he would consider moving more production to the United States, where the group makes 25% of its annual sales.
He said Brussels would be to blame if no deal is negotiated and Europe loses some of its production, and that other companies were also considering increasing U.S. manufacturing.
"I've already heard of several companies who are thinking about shifting more production to the United States, but you couldn't say this is the fault of the companies. This would be Brussels' fault," he said.
The European Commission, the EU executive, has said that the United States has yet to set out its negotiating position, while U.S. officials have not commented on talks with the EU.
Analysts have said any production shifts would likely be limited and would do little to mitigate tariff risks.
Apart from three Louis Vuitton workshops and some Tiffany jewellery-making sites, LVMH has little production capacity in the United States. Much of its business comes from selling "made in France" luxury leather goods, champagne and spirits.
Production problems at its high-profile Texas facility have meant the site has been consistently ranked among the worst-performing for Louis Vuitton globally, Reuters has reported.
LVMH shareholders on Thursday voted to allow Arnault, 76, to remain at in charge until he is 85.
The company also confirmed Jonathan Anderson's long-awaited move to Dior, where he will design his first men's collection to be shown in June.
Anderson, 40, whose departure from LVMH's smaller label Loewe was announced on March 17, is one of a new generation of high-profile designers taking over some of the world's biggest fashion labels as part of an industry overhaul.
($1 = 0.8801 euros)
(Reporting by Mimosa Spencer and Tassilo Hummel; Writing by Makini Brice and Tassilo Hummel; Additional reporting by Jan Strupczewski in Brussels; Editing by Dominique Vidalon, Emelia Sithole-Matarise and Barbara Lewis)
The article discusses LVMH CEO Bernard Arnault's criticism of Brussels over trade tensions with the US and potential impacts on LVMH.
US tariffs could impose a 20% charge on European fashion, impacting LVMH's business significantly.
Arnault suggests increasing production in the US to mitigate the impact of tariffs.
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