Tensions with Trump: LVMH's Arnault Urges Europe to Act

LVMH CEO Bernard Arnault urges European governments to resolve tariff tensions with the Trump administration to protect businesses like his. He warns about tariffs affecting the luxury sector and considers moving production to the U.S. The company's shares have fallen, and Arnault criticizes Brussels for slow negotiations.

European governments need to act swiftly to ease tensions with the United States over President Donald Trump's tariffs, according to LVMH CEO Bernard Arnault. At an annual shareholder meeting, he noted that it would be 'Brussels' fault' if a resolution isn't reached.

Arnault, addressing the economic challenges posed by global trade tensions, linked market turmoil to these issues. He noted U.S. tariffs could significantly impact LVMH's business, with potential charges of up to 31% on certain goods. Although Trump paused some tariffs for 90 days, investor concerns contributed to a 36% decline in LVMH's shares.

Arnault also pointed out that some companies, including LVMH, might shift production to the U.S. to mitigate tariff impacts. Despite production hurdles at some facilities, LVMH is exploring options as negotiations with the EU remain at an impasse.

(With inputs from agencies.)