Sparks Fly as Bernard Arnault Threatens to Boost US Production Amid Tariff Standoff
Commission's Response Pending from Fellow Commission
Everyone's on edge following Bernard Arnault's bold statements, pressuring Europe into a tariff agreement, or else he'll ramp up production in the U.S. Eric Lombard, France's Minister of the Economy, wasted no time in clapping back, calling for some good ol' unity.
dropping a jarring statement on LVMH shareholders, Arnault warned Europe, "Hold up or I'll ramp up my US production." Sounds like things are heating up, huh?
The big boss of luxury didn't stop there. He dangled the blame at the feet of Brussels: "It's Brussels' fault if this happens." Well, like a boss, Lombard kept his cool, reminding us all that free speech is totally cool in France. Still, he didn't miss the chance to send some firm messages.
Tariffs: Sophie Binet v. Bernard Arnault
With eyes rollin' and chins waggin', Lombard defended Europe's rock-solid unity. He argued that Europe is on this thanks to the European Commissioner (Maroš Šefčovič) who has the clout, talent, and smarts to negotiate with the Yanks. The deal isn't yet done, according to the French minister, because the Americans haven't got the green light from their top honcho.
Taking a not-so-subtle jab at LVMH's supremo, the Minister made it clear that this tariff battle calls for determination, clear thinking, and some staunch European unity. "Comm'on, let's not look pathetic," he added, addressing French business leaders.
"Time for solidarity," the Minister emphasized, urging national and European unity, especially during this tricky period. After all, he'll be traveling to Washington soon as part of the IMF and G7.
The Bernard Arnault - Government War of Words continues...
This latest salvo between Arnault and the government follows the big cheese's criticism of the government's proposed supertax on large companies, way back in January.
Keywords: Trade War, Bernard Arnault, LVMH, European Union, Luxury
Enrichment Data:
As of June 2025, the current status of tariff negotiations between the United States and Europe is marked by ongoing discussions and cautious optimism. Despite recent escalations, both sides have expressed a willingness to continue negotiations. Here are the key points:
Recent Developments:
- EU Consultation and Delays: The EU launched a public consultation on potential countermeasures to U.S. tariffs on automotive, reciprocal, and aluminum products. These measures were initially set to start on June 1 but were delayed until July 9, 2025[1].
- U.S. Tariff Increases: The U.S. has imposed increased tariffs on steel and aluminum, doubling them from 25% to 50% as of June 4, 2025. Additional tariffs on automobiles and other products have also been in place since earlier this year[2].
- Negotiation Progress: The European Commission remains hopeful that negotiations will yield positive results, maintaining a strategy of restraint on retaliatory measures despite the U.S. tariff increases. European Trade Commissioner Maroš Šefčovič expressed optimism after meeting with the U.S. Trade Representative[2].
Bernard Arnault's Position:
While Bernard Arnault, the CEO of LVMH, has reportedly considered increasing production in the U.S. if no agreement is reached, this specific threat is not directly influencing the current negotiations between the U.S. and Europe. However, such business strategies can highlight the broader economic pressures and complexities involved in these trade discussions.
Overall, both sides are engaged in negotiations, with the EU holding back on retaliation in the hope of reaching a mutually beneficial agreement. The prospect of increased production in the U.S. by European companies could be a response to the ongoing tariff tensions rather than a direct factor in the negotiations.
- With Bernard Arnault considering increasing production in the US if no agreement is reached, the trade war between the United States and Europe remains a topic of intense debate, particularly within the realm of business finance.
- As the trade war between the US and Europe continues, the luxury industry, spearheaded by figures like Bernard Arnault, finds itself at the heart of general-news discussions, with politics playing a significant role in shaping the business landscape.
