Latest news with #Arnault
Yahoo
28-05-2025
- Business
- Yahoo
Tiptoeing Around Trump, Fashion Refines Trade War Rhetorical Style
Fashion is learning how to talk — and when to keep quiet — in the 'Art of the Deal' age. U.S. President Donald Trump decided he wanted more from the European Union on Friday and recommended 50 percent tariffs on imports starting June 1. More from WWD LVMH is Innovating With its Viva Tech Stand Trump Threatens 50% Tariffs on EU, Rattling Markets Pandora Wants to Become the World's Jeweler, One Charm at a Time While that would be a profit-crushing levy at the border of a vital market for European luxury houses, the reaction from fashion wasn't so much muted as it was nonexistent. WWD reached out to Beiersdorf, Brunello Cucinelli, Ferragamo, Hermès, Kering, LVMH Moët Hennessy Louis, L'Oréal, Moncler, Prada, Puig, Richemont, Safilo, Unilever and Zegna and it was no comment or no response all around. The C-suite is learning — or rather often pugnacious Trump is teaching — just what it is that will keep corporations out of the fiery world of politics. When Doug McMillon, president and chief executive officer of Walmart Inc., said earlier this month that the discount giant could not 'absorb all the pressure' of the tariffs and suggested prices would rise, Trump shot back hard. He pointed to Walmart's $19.4 billion in profits last year and said Walmart and China should collectively 'EAT THE TARIFFS.' 'I'll be watching, and so will your customers!!!' the president warned. Target Corp. CEO Brian Cornell, reporting earnings the following week, is no doubt feeling all the same pressures, but was careful on the topic of tariff-related price hikes, calling them only 'the very last resort.' That seemed to be enough to give the company a pass from Trump. When fashion has spoken out, it has not been to react directly to some action, but in a more general context that's often favorable to the idea of some wheeling and dealing. Bernard Arnault, chairman and CEO of LVMH, urged the European Union to make concessions in its trade talks with the Trump administration during a hearing in the French Senate. 'It is very important for Europe to reach an agreement with the United States and I would say that, so far, things seem to be off to a relatively bad start,' he said. 'Negotiations must be handled constructively. They must aim to achieve results, and therefore with reciprocal concessions.' Arnault cited the example of the United Kingdom, which was the first foreign country to reach a deal with Trump. 'I hope to be able to convince Europe, with my limited resources and contacts, to adopt a similarly constructive attitude,' said Arnault, downplaying his position as billionaire luxury titan who has contacts everywhere. 'For France, the risk is major, particularly for cognac and Champagne, but especially for cognac.' Workers at some of LVMH's Champagne houses have staged strikes this month after the luxury conglomerate's wine and spirits division Moët Hennessy announced plans to shrink its workforce by 1,200 employees in response to challenging market conditions. The unit's revenues fell by 8 percent in organic terms in 2024. 'I get the feeling that in France, we're not really aware of the problem. But today, roughly 80 percent of cognac sales worldwide are made to China and the United States,' Arnault said. Unless an agreement is reached, 80,000 winegrowers could be impacted in the Charente region, where cognac is from, he warned. Arnault has known Trump for years, set up a manufacturing facility in Texas during his first term in the White House and attended his second inauguration. But those connections only go so far in the game of geopolitics. Trump on Friday recommended 'a straight 50 percent tariff on the European Union, starting on June 1' in a post on social media Friday, saying that trans-Atlantic trade talks 'are going nowhere.' While imports from the EU were hit with 20 percent tariffs when Trump rolled out his reordering of global trade on 'Liberation Day,' April 2, that was cut to 10 percent pending negotiations. Washington's hardball, yet start-and-stop approach to trade did open up talks with countries around the world but few deals have been struck. Trump, whose mother was born in Scotland, has given the U.K. a break, fixing import tariffs at 10 percent, and striking an 'economic prosperity' trade deal earlier this month that will see some tariffs wiped out entirely. But even that won't shield British brands' operation across the global fashion industry. London-based Burberry, for instance, would likely be impacted by the tariffs to some extent as it produces the bulk of its collections between the U.K. and Europe. Trump reiterated that the EU was formed for 'the primary purpose of taking advantage of the United States on trade' and said the bloc has been 'very difficult to deal with. 'Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more, have led to a trade deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,' he said. That figure understates the goods deficit with the EU, which the U.S. Trade Representative's office pegged at '$235.6 billion in 2024, a 12.9 percent increase ($26.9 billion) over 2023.' While Trump recommended a 50 percent tariff on EU goods, these numbers have a way of moving lower. China, after some tit-for-tat tariff boosts, saw tariffs on its goods shoot up to 245 percent this spring — a level that was in effect an economic embargo. But those tariffs fell to 30 percent for 90 days to facilitate negotiations. Richemont is also based outside the EU, in Switzerland, but many of the companies in its portfolio are based in and manufacture in France and Italy. While the company did not comment on the tariffs, its founder and chairman Johann Rupert said earlier this month that he understands what Trump is trying to do. 'I believe the United States are using the tariffs in a transactional manner, and I do believe there are wise people in the Treasury of the United States who do not wish to have a total cessation of world trade,' said Rupert following the release of Richemont's fiscal 2025 results. Rupert added: 'There are imbalances that need to be addressed. The United States cannot carry on blowing up its debt which stands at nearly $37 trillion, and so President Trump is doing things that need to be done to address the overall situation.' Richemont, which produces all of its watches and some of its jewelry in Switzerland, is holding its nerve on any substantial price increases until it sees where tariffs land. Rupert said he is loath to raise prices drastically — anywhere — for fear of damaging the relationship with the local customer. A few days ago Rupert traveled to Washington, D.C. with South African president Cyril Ramaphosa and a delegation of the country's golf enthusiasts. They talked mainly about violence in South Africa, and the need for more security and Elon Musk's Starlink satellite internet services, but not about tariffs — in public at least. It's in private where the real deals are likely to be struck. — With contributions from Luisa Zargani and Jennifer Weil Best of WWD Pandemic Has Stoked Appetite for French Luxury, Survey Finds U.S. Sets Strategic Vision for China Trade Policy Furmark's Farm-to-Shopfloor Tracing Tags Set for International Debut Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
24-05-2025
- Business
- Fashion Network
Europe must make concessions to Trump in trade talks, LVMH's Arnault says
The European Union must soften its stance toward U.S. President Donald Trump 's trade demands and negotiate a deal to avoid tariffs and protect European jobs, LVMH CEO and chairman Bernard Arnault said on Wednesday. Talks between Brussels and Washington should be handled "with the aim to succeed and therefore with reciprocal concessions," Arnault said. "For now, I am under the impression it's not going well." Speaking to French senators during a parliamentary hearing, Arnault said he was actively lobbying to avoid tariffs, citing his group's cognac and wine business as particularly impacted by the trade tensions. "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", Arnault said. Britain earlier this month struck a deal that would improve access for the worst-hit sectors, rather than pursuing a wider agreement. Arnault did not comment further when asked by lawmakers about his direct talks with Trump and a recent visit to the White House. The United States is LVMH's most important market, accounting for 25% of annual sales.
Yahoo
23-05-2025
- Business
- Yahoo
Tiptoeing Around Trump, Fashion Refines Trade War Rhetorical Style
Fashion is learning how to talk — and when to keep quiet — in the 'Art of the Deal' age. U.S. President Donald Trump decided he wanted more from the European Union on Friday and recommended 50 percent tariffs on imports starting June 1. More from WWD Trump Threatens 50% Tariffs on EU, Rattling Markets Pandora Wants to Become the World's Jeweler, One Charm at a Time JD Sports CEO Calls Foot Locker Acquisition 'Positive' for Market, Calls Out Trump's Immigration Policy for Slowdown at Shoe Palace While that would be a profit-crushing levy at the border of a vital market for European luxury houses, the reaction from fashion wasn't so much muted as it was nonexistent. WWD reached out to Beiersdorf, Brunello Cucinelli, Ferragamo, Hermès, Kering, LVMH Moët Hennessy Louis, L'Oréal, Moncler, Prada, Puig, Richemont, Safilo, Unilever and Zegna and it was no comment or no response all around. The C-suite is learning — or rather often pugnacious Trump is teaching — just what it is that will keep corporations out of the fiery world of politics. When Doug McMillon, president and chief executive officer of Walmart Inc., said earlier this month that the discount giant could not 'absorb all the pressure' of the tariffs and suggested prices would rise, Trump shot back hard. He pointed to Walmart's $19.4 billion in profits last year and said Walmart and China should collectively 'EAT THE TARIFFS.' 'I'll be watching, and so will your customers!!!' the president warned. Target Corp. CEO Brian Cornell, reporting earnings the following week, is no doubt feeling all the same pressures, but was careful on the topic of tariff-related price hikes, calling them only 'the very last resort.' That seemed to be enough to give the company a pass from Trump. When fashion has spoken out, it has not been to react directly to some action, but in a more general context that's often favorable to the idea of some wheeling and dealing. Bernard Arnault, chairman and CEO of LVMH, urged the European Union to make concessions in its trade talks with the Trump administration during a hearing in the French Senate. 'It is very important for Europe to reach an agreement with the United States and I would say that, so far, things seem to be off to a relatively bad start,' he said. 'Negotiations must be handled constructively. They must aim to achieve results, and therefore with reciprocal concessions.' Arnault cited the example of the United Kingdom, which was the first foreign country to reach a deal with Trump. 'I hope to be able to convince Europe, with my limited resources and contacts, to adopt a similarly constructive attitude,' said Arnault, downplaying his position as billionaire luxury titan who has contacts everywhere. 'For France, the risk is major, particularly for cognac and Champagne, but especially for cognac.' Workers at some of LVMH's Champagne houses have staged strikes this month after the luxury conglomerate's wine and spirits division Moët Hennessy announced plans to shrink its workforce by 1,200 employees in response to challenging market conditions. The unit's revenues fell by 8 percent in organic terms in 2024. 'I get the feeling that in France, we're not really aware of the problem. But today, roughly 80 percent of cognac sales worldwide are made to China and the United States,' Arnault said. Unless an agreement is reached, 80,000 winegrowers could be impacted in the Charente region, where cognac is from, he warned. Arnault has known Trump for years, set up a manufacturing facility in Texas during his first term in the White House and attended his second inauguration. But those connections only go so far in the game of geopolitics. Trump on Friday recommended 'a straight 50 percent tariff on the European Union, starting on June 1' in a post on social media Friday, saying that trans-Atlantic trade talks 'are going nowhere.' While imports from the EU were hit with 20 percent tariffs when Trump rolled out his reordering of global trade on 'Liberation Day,' April 2, that was cut to 10 percent pending negotiations. Washington's hardball, yet start-and-stop approach to trade did open up talks with countries around the world but few deals have been struck. Trump, whose mother was born in Scotland, has given the U.K. a break, fixing import tariffs at 10 percent, and striking an 'economic prosperity' trade deal earlier this month that will see some tariffs wiped out entirely. But even that won't shield British brands' operation across the global fashion industry. London-based Burberry, for instance, would likely be impacted by the tariffs to some extent as it produces the bulk of its collections between the U.K. and Europe. Trump reiterated that the EU was formed for 'the primary purpose of taking advantage of the United States on trade' and said the bloc has been 'very difficult to deal with. 'Their powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies, and more, have led to a trade deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,' he said. That figure understates the goods deficit with the EU, which the U.S. Trade Representative's office pegged at '$235.6 billion in 2024, a 12.9 percent increase ($26.9 billion) over 2023.' While Trump recommended a 50 percent tariff on EU goods, these numbers have a way of moving lower. China, after some tit-for-tat tariff boosts, saw tariffs on its goods shoot up to 245 percent this spring — a level that was in effect an economic embargo. But those tariffs fell to 30 percent for 90 days to facilitate negotiations. Richemont is also based outside the EU, in Switzerland, but many of the companies in its portfolio are based in and manufacture in France and Italy. While the company did not comment on the tariffs, its founder and chairman Johann Rupert said earlier this month that he understands what Trump is trying to do. 'I believe the United States are using the tariffs in a transactional manner, and I do believe there are wise people in the Treasury of the United States who do not wish to have a total cessation of world trade,' said Rupert following the release of Richemont's fiscal 2025 results. Rupert added: 'There are imbalances that need to be addressed. The United States cannot carry on blowing up its debt which stands at nearly $37 trillion, and so President Trump is doing things that need to be done to address the overall situation.' Richemont, which produces all of its watches and some of its jewelry in Switzerland, is holding its nerve on any substantial price increases until it sees where tariffs land. Rupert said he is loath to raise prices drastically — anywhere — for fear of damaging the relationship with the local customer. A few days ago Rupert traveled to Washington, D.C. with South African president Cyril Ramaphosa and a delegation of the country's golf enthusiasts. They talked mainly about violence in South Africa, and the need for more security and Elon Musk's Starlink satellite internet services, but not about tariffs — in public at least. It's in private where the real deals are likely to be struck. — With contributions from Luisa Zargani and Jennifer Weil Best of WWD Pandemic Has Stoked Appetite for French Luxury, Survey Finds U.S. Sets Strategic Vision for China Trade Policy Furmark's Farm-to-Shopfloor Tracing Tags Set for International Debut Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion United
22-05-2025
- Business
- Fashion United
Arnault slams France's tax plans: ‘Encouragement to relocate'
Bernard Arnault, CEO of the world's largest luxury firm LVMH, strongly criticised the French government during a hearing in the French Senate. In his argument, he stated that 'it is very bad for the state to interfere in the management of private companies'. This statement came in response to President Emmanuel Macron's recent call for economic patriotism. The hearing was part of a broader evaluation of state support for large companies. Arnault emphasised that government interference in strategic corporate choices has rarely led to good results in the past. The chief executive said: "In general, that leads to catastrophes." He added that LVMH is 'perhaps the most patriotic company in France', with strong roots in the French economy and culture. 'Tax increase could drive luxury industry out of France' LVMH – owner of iconic brands such as Louis Vuitton, Dior, Moët & Chandon and Hennessy – had already criticised new fiscal proposals in the French budget for 2025 earlier this year. These include an increase in corporation tax for large companies. Arnault fears that such measures will encourage companies to relocate, moving production to countries with more favourable economic conditions. The US has become particularly attractive in that regard, especially under the investment climate stimulated by Donald Trump's re-election campaign. LVMH now owns three Louis Vuitton production facilities in the US, including one in Texas. Arnault stressed, however, that this is not a new phenomenon. He said: 'We have been producing in the US since 1989; there is nothing new under the sun.' According to him, the American customs regulations offer significant advantages for locally produced goods. Fashion as a global industry Arnault's comments touch on a broader tension in the luxury sector: how do companies remain true to their national roots in an industry that operates increasingly globally? The French fashion industry, often seen as cultural heritage, is simultaneously driven by international demand, global production and complex supply chains. François-Henri Pinault, CEO of rival Kering (parent company of Gucci, Yves Saint Laurent and Balenciaga), agreed with this realistic vision. During a previous hearing, he stated: 'It's no secret that Gucci makes Italian bags from leather from Texas.' Patriotism versus pragmatism The discussion underlines the growing tension between national policy and the reality of an international market. While political leaders are pushing for economic patriotism, large luxury groups continue to optimise their production and investments worldwide. This presents policymakers, companies and consumers with a difficult balance: remaining true to the French heritage, without losing competitiveness on the world stage. For the French luxury sector, which accounts for billions of euros in exports and hundreds of thousands of jobs, such debates are anything but theoretical. The outcome of these debates may determine the course of some of the world's most influential fashion houses. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fashion Network
21-05-2025
- Business
- Fashion Network
Europe must make concessions to Trump in trade talks, LVMH's Arnault says
The European Union must soften its stance toward U.S. President Donald Trump 's trade demands and negotiate a deal to avoid tariffs and protect European jobs, LVMH CEO and chairman Bernard Arnault said on Wednesday. Talks between Brussels and Washington should be handled "with the aim to succeed and therefore with reciprocal concessions," Arnault said. "For now, I am under the impression it's not going well." Speaking to French senators during a parliamentary hearing, Arnault said he was actively lobbying to avoid tariffs, citing his group's cognac and wine business as particularly impacted by the trade tensions. "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", Arnault said. Britain earlier this month struck a deal that would improve access for the worst-hit sectors, rather than pursuing a wider agreement. Arnault did not comment further when asked by lawmakers about his direct talks with Trump and a recent visit to the White House. The United States is LVMH's most important market, accounting for 25% of annual sales. © Thomson Reuters 2025 All rights reserved.
