Bernard Arnault, CEO and chairman of luxury goods firm LVMH, has asked the European Union to reconcile with US President Donald Trump in the bloc’s ongoing trade negotiations with the US. Speaking before French lawmakers on Wednesday, the billionaire executive said European jobs and industries were at stake because of Washington’s tariff policies.
Arnault, whose company is Europe’s most valuable company with a 243 billion euro market capitalization, made a plea to the French parliamentary hearing to speed up its diplomatic trade discussions with America.
“So far, things seem to me to be off to a relatively bad start,” he said. “For now, I am under the impression it’s not going well.”
Trade deal could protect European jobs
The luxury magnate stressed that it needs to be on good terms with the United States, because the West is LVMH’s largest market, and that a friendly relationship with President Trump is much better for the European economy.
“The negotiations must be conducted constructively … and therefore with reciprocal concessions,” Arnault told senators. He mentioned the recent UK-US trade pact as an example of effective diplomacy, saying the British had “negotiated very well” for a relief from Trump’s trade tariffs.
After months of deadlock, the EU has only recently begun negotiations with the United States. Trump’s administration had introduced a 20% reciprocal tariff on EU exports, which was later reduced to 10% until July 8 to allow time for the two sides to reach a consensus.
President Trump and UK Prime Minister Sir Keir Starmer announced a bilateral trade agreement in mid-May. The deal granted the UK tariff-free steel exports to the US and a lower 10% levy on 100,000 cars exported annually to America.
Luxury business suffers brunt of trade tensions
The luxury goods business, largely based in Europe, has been facing months of headwinds from declining Chinese demand. According to Arnault, tariffs on exports to the US threaten to compound these difficulties.
He told French lawmakers that without China, the European luxury industry would struggle because it has limited capacity to shift production to the United States.
LVMH’s Hennessy brand has been hit by falling sales in both the US and China. The Chinese government has launched an anti-dumping probe targeting European liquor in retaliation for EU restrictions on Chinese electric vehicle imports.
CEO Arnault claimed that if access to both the American and Chinese markets is lost, the consequences could be “catastrophic,” seeing 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 added weight given his relationship with Donald Trump. The two have known each other for decades, and Arnault attended Trump’s inauguration in 2017.
Earlier this year, the LVMH chairman disclosed that his company could expand manufacturing in the United States, though he reiterated that most luxury production would remain in Europe.
Europe seeks US help in Russia-Ukraine war ceasefire
Meanwhile, European leaders recently pledged to impose new sanctions on Russia following President Vladimir Putin’s refusal to agree to a ceasefire in Ukraine. The union is hoping Moscow concedes to President Trump’s demands for a trade agreement to ensue.
On Monday, Trump spoke with Putin for two hours but failed to announce any new developments on the war. The POTUS only 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. He added that Ukraine “can be a great beneficiary on Trade in the process of rebuilding its Country.”
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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