Meeting and Calling Both Sides
"Agreement Expected Before August 1"
Bernard Arnault, chairman of LVMH (Louis Vuitton Moet Hennessy), is working behind the scenes to facilitate tariff negotiations between the United States and the European Union (EU). He has been making phone calls with key figures on the US side, including President Donald Trump, and traveling across various European countries to coordinate efforts.
In an interview with the Wall Street Journal (WSJ) published on July 24 (local time), Arnault said, "I am doing my utmost to reach an agreement with the United States."
He added, "That is the only way to avoid being caught up in a trade war. A trade war would be extremely damaging to European companies."
Arnault predicted that the EU and the United States would reach an agreement before President Trump begins imposing reciprocal tariffs on August 1, saying he is "quite optimistic." He regularly speaks with President Trump by phone and has recently also spoken with US Treasury Secretary Scott Besant and Commerce Secretary Howard Lutnick. Arnault said, "I believe President Trump is open to finding a solution. I got the impression that he is well aware of the situation," adding, "However, he wants results. If there are no results, he will do exactly what he said he would."
Arnault stated, "We cannot afford to fall out with our major economic partners," and explained, "Since the July 31 deadline was set, I have invested considerable time persuading key European countries such as Italy, Germany, and France." According to the WSJ, Arnault warned Ursula von der Leyen, president of the European Commission, not to take actions that could escalate tensions with the United States, and he also spoke with French President Emmanuel Macron. He further met with European leaders such as German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, urging them to reach an agreement at a level similar to the US-Japan trade deal.
Arnault has maintained a close relationship with President Trump since the 1980s. Their families are also acquainted: Arnault's third son Alexandre is friends with Trump's eldest son-in-law Jared Kushner, and his eldest daughter Delphine is close to Trump's eldest daughter Ivanka.
On this day, LVMH announced that its net profit for the first half of the year had fallen by 22%, as sales in its core fashion and leather goods segment?including Louis Vuitton and Christian Dior?plummeted. With the economic downturn in China, which had been a growth engine for the luxury industry, continuing for an extended period, the US market?which accounts for one-third of LVMH's sales?is now facing a tariff crisis. As a result, LVMH's stock price has dropped by more than 30% since January. This is why Arnault is personally working to secure a US-EU trade agreement. However, he expressed confidence that, unlike other luxury brands, LVMH has the resilience to withstand the crisis.
At the same time, LVMH plans to expand its manufacturing facilities in the United States to respond to tariffs. Arnault stated that he plans to establish a second factory in Texas by early 2027. During the first Trump administration, Arnault built the first Louis Vuitton factory in Texas to avoid tariffs, and President Trump attended the opening ceremony at that time.
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