LVMH CEO Calls for Resolution on U.S.-Europe Trade Tensions

LVMH CEO Bernard Arnault urges European governments to negotiate with the U.S. on tariffs imposed by President Trump, warning that failing to do so could harm LVMH and other companies. Arnault suggests moving production to the U.S. and blames Brussels for potential trade issues.

LVMH CEO Bernard Arnault has called on European leaders to de-escalate trade tensions with the United States over tariffs imposed under President Donald Trump. Speaking at the company's annual shareholder meeting, he emphasized the need for effective negotiations and warned of potential consequences if Europe fails to act decisively.

Arnault highlighted the impact of U.S. tariffs on European luxury goods, including possible charges of 20% on fashion and leather items and 31% on Swiss watches. Although Trump recently paused some tariffs, Arnault pointed to investor concerns that have led to significant drops in LVMH's market value.

To mitigate tariff impacts, Arnault suggested an increase in U.S. production, citing other companies considering similar shifts. However, with limited capacity in the U.S., relying on "made in France" products could pose challenges. Additionally, LVMH shareholders approved Arnault to remain CEO until age 85, alongside news of Jonathan Anderson's transition to Dior.

(With inputs from agencies.)