LVMH Chief Urges Eu to Make Concessions to Trump in Trade Talks
Bernard Arnault, CEO and chairman of luxury goods conglomerate LVMH, has called upon the European Union to adopt a more conciliatory approach in its ongoing trade negotiations with the United States. Speaking to French lawmakers, the billionaire executive emphasized that European jobs and industries are at risk due to Washington's current tariff policies.
Arnault, whose company holds the distinction of being Europe's most valuable with a 243 billion euro €. market capitalization, urged for accelerated diplomatic trade discussions with the U.S. "So far, things seem to me to be off to a relatively bad start," he remarked, expressing concern about the current state of negotiations.
The luxury magnate underscored the importance of maintaining strong relations with the United States, given that the West represents LVMH's largest market. He argued that a cooperative relationship with the U.S. administration would be significantly more beneficial for the European economy. "The negotiations must be conducted constructively… and therefore with reciprocal concessions," Arnault told senators. He pointed to the recent UK-US trade pact as an example of successful diplomacy, noting that the British had "negotiated very well" to secure relief from Trump's trade tariffs.
After months of stalemate, the EU (€)and the United States have only recently resumed trade discussions. The Trump administration had initially imposed a 20% reciprocal tariff on EU exports, which was subsequently reduced to 10% until July 8 to facilitate a consensus. In contrast, President Trump and UK Prime Minister Sir Keir Starmer announced a bilateral trade agreement in mid-May, which granted the UK tariff-free steel exports to the US and a reduced 10% levy on 100,000 cars exported annually to America.
The European luxury goods sector, predominantly based in Europe, has been grappling with headwinds from declining Chinese demand. Arnault warned that tariffs on exports to the US could exacerbate these difficulties. He informed French lawmakers that without access to the Chinese market, the European luxury industry would struggle due to its limited capacity to relocate production to the United States.
LVMH's Hennessy brand, for instance, has experienced falling sales in both the US and China. The Chinese government has also initiated an anti-dumping probe targeting European liquor, a retaliatory measure for EU restrictions on Chinese electric vehicle imports. Arnault cautioned that losing access to both the American and Chinese markets could have "catastrophic" consequences, highlighting that France's cognac industry alone supports approximately 80,000 jobs. "We must do everything with Europe to prevent this. Because the day it happens, it will be too late," he added.
Bernard Arnault's appeal to EU leaders carries additional weight given his long-standing relationship with Donald Trump, having known each other for decades and with Arnault attending Trump's inauguration in 2017. Earlier this year, the LVMH chairman indicated that his company might expand manufacturing in the United States, though he reiterated that most luxury production would remain in Europe.
Meanwhile, European leaders have recently pledged new sanctions on Russia following President Vladimir Putin's refusal to agree to a ceasefire in Ukraine. The union is reportedly hoping Moscow will concede to President Trump's demands for a trade agreement to ensue. On Monday, Trump held a two-hour discussion with Putin but did not announce any new developments regarding the conflict. The US President merely told reporters he was "confident" of resuming trade with Moscow once the conflict subsides. "Russia wants to do large-scale TRADE with the United States when this catastrophic 'bloodbath' is over, and I agree," Trump posted on social media, adding that Ukraine "can be a great beneficiary on Trade in the process of rebuilding its Country."
LVMH Chief Urges EU to Make Concessions to Trump in Trade Talks
Bernard Arnault, CEO and chairman of luxury goods conglomerate LVMH, has called upon the European Union to adopt a more conciliatory approach in its ongoing trade negotiations with the United States. Speaking to French lawmakers, the billionaire executive emphasized that European jobs and industries are at risk due to Washington's current tariff policies.
Arnault, whose company holds the distinction of being Europe's most valuable with a 243 billion euro market capitalization, urged for accelerated diplomatic trade discussions with the U.S. "So far, things seem to me to be off to a relatively bad start," he remarked, expressing concern about the current state of negotiations.
The luxury magnate underscored the importance of maintaining strong relations with the United States, given that the West represents LVMH's largest market. He argued that a cooperative relationship with the U.S. administration would be significantly more beneficial for the European economy. "The negotiations must be conducted constructively… and therefore with reciprocal concessions," Arnault told senators. He pointed to the recent UK-US trade pact as an example of successful diplomacy, noting that the British had "negotiated very well" to secure relief from Trump's trade tariffs.
After months of stalemate, the EU and the United States have only recently resumed trade discussions. The Trump administration had initially imposed a 20% reciprocal tariff on EU exports, which was subsequently reduced to 10% until July 8 to facilitate a consensus. In contrast, President Trump and UK Prime Minister Sir Keir Starmer announced a bilateral trade agreement in mid-May, which granted the UK tariff-free steel exports to the US and a reduced 10% levy on 100,000 cars exported annually to America.
The European luxury goods sector, predominantly based in Europe, has been grappling with headwinds from declining Chinese demand. Arnault warned that tariffs on exports to the US could exacerbate these difficulties. He informed French lawmakers that without access to the Chinese market, the European luxury industry would struggle due to its limited capacity to relocate production to the United States.
LVMH's Hennessy brand, for instance, has experienced falling sales in both the US and China. The Chinese government has also initiated an anti-dumping probe targeting European liquor, a retaliatory measure for EU restrictions on Chinese electric vehicle imports. Arnault cautioned that losing access to both the American and Chinese markets could have "catastrophic" consequences, highlighting that France's cognac industry alone supports approximately 80,000 jobs. "We must do everything with Europe to prevent this. Because the day it happens, it will be too late," he added.
Bernard Arnault's appeal to EU leaders carries additional weight given his long-standing relationship with Donald Trump, having known each other for decades and with Arnault attending Trump's inauguration in 2017. Earlier this year, the LVMH chairman indicated that his company might expand manufacturing in the United States, though he reiterated that most luxury production would remain in Europe.
Meanwhile, European leaders have recently pledged new sanctions on Russia following President Vladimir Putin's refusal to agree to a ceasefire in Ukraine. The union is reportedly hoping Moscow will concede to President Trump's demands for a trade agreement to ensue. On Monday, Trump held a two-hour discussion with Putin but did not announce any new developments regarding the conflict. The US President merely told reporters he was "confident" of resuming trade with Moscow once the conflict subsides. "Russia wants to do large-scale TRADE with the United States when this catastrophic 'bloodbath' is over, and I agree," Trump posted on social media, adding that Ukraine "can be a great beneficiary on Trade in the process of rebuilding its Country."
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