Paris – Luxury titan Bernard Arnault, Chairman and CEO of LVMH Moët Hennessy Louis Vuitton, is actively assisting President Trump's efforts to secure a trade deal with the European Union, as reported by The Wall Street Journal in a recent tweet. Arnault is leveraging his influence and long-standing relationship with the U.S. President to urge the European Union to soften its stance in ongoing trade negotiations. The push comes ahead of an August 1 deadline, after which President Trump has threatened to impose a sweeping 30% levy on EU imports.
Arnault has publicly called for the European Union to adopt a more constructive attitude to avoid punitive tariffs and protect European jobs. Speaking to French senators, he stated, "You see what the British have done, they have negotiated very well. Using my modest means and contacts, I hope I will manage to convince Europe to adopt a similarly constructive attitude." LVMH's significant cognac and wine businesses are particularly vulnerable to increased trade tensions.
The French billionaire has warned that a failure to reach an agreement could compel LVMH and other European companies to move production to the United States. Arnault, who has known Trump for decades, opened a Louis Vuitton factory in Texas in 2019, a move seen as instrumental in helping the group mitigate tariffs on luxury goods. He maintains that if Europe cannot negotiate intelligently, the consequences for many businesses will be severe.
The European Union has indicated that a trade deal is "within reach," with negotiators working diligently to meet the deadline. However, President Trump has made it clear that his condition for withdrawing the threatened 30% levy is for the EU to "agree to open up the Union to American businesses." LVMH is currently anticipating a positive outcome from the trade discussions, despite recent reports of weaker-than-expected sales, which the company attributes in part to consumer fatigue amid trade uncertainties.
Arnault has been critical of the EU's bureaucratic approach to negotiations, suggesting that if no solution is found, it would be "Brussels' fault." He advocates for a free-trade zone between Europe and the United States, emphasizing the critical importance of a friendly relationship with the U.S. for the European economy.