CEO of French luxury conglomerate LVMH calls for calming trade tensions with US

PARIS (AP) — Bernard Arnault, chairman and CEO of French luxury group LVMH, advocated on Thursday for a free trade zone between the European Union and the United States, warning that ongoing trade tensions could severely impact European industries. Arnault’s statements came in response to recent tariffs imposed by President Donald Trump and were reminiscent of a similar proposal made by Elon Musk on April 5 for a tariff-free zone between the U.S. and EU. While the EU has been pushing for a reciprocal trade agreement with no tariffs, Trump has rejected this idea.

Addressing shareholders at LVMH’s annual meeting, Arnault urged European leaders to engage in smart negotiations with the U.S. administration and emphasized the need for national governments to play a more active role in trade talks, rather than leaving everything to Brussels. He criticized the EU’s bureaucratic approach that he believes hampers business growth.

LVMH, a leading luxury conglomerate known for brands like Moët & Chandon, Hennessy, Louis Vuitton, and Dior, recently lost its top luxury company status to Hermès. Arnault expressed concerns about the impact of potential tariffs on their business and hinted at the possibility of expanding operations in the U.S. if negotiations with Europe do not yield positive results.

The CEO also voiced criticism of proposed corporate tax hikes in France, warning that they could drive companies to relocate overseas. He praised the U.S. tax system and government support for industrial investment, contrasting it with what he sees as burdensome regulations in Europe.

Outside the shareholder meeting, protesters called for higher taxes on the wealthy, holding signs demanding that the rich be taxed. Arnault was depicted as a thief in a large puppet, symbolizing the group’s discontent with the current tax system.