Overview

• Bernard Arnault, CEO of LVMH, called for a zero-tariff free trade zone between the U.S. and EU at the company's April 17 shareholder meeting.
• Arnault criticized EU bureaucracy and France’s proposed corporate tax hikes, warning they undermine European business competitiveness.
• He cautioned that unresolved U.S.-EU trade tensions and potential tariffs could compel LVMH to expand production in the U.S., citing the EU’s responsibility to negotiate effectively.
• LVMH shares dropped 7.8% this week following a first-quarter sales decline, and the company lost its position as the world’s largest luxury firm to Hermès.
• Arnault acknowledged the underperformance of LVMH’s 2019 Texas workshop but highlighted the U.S. as a key market, accounting for 25% of the company’s total sales.