Bernard Arnault, the head of luxury giant LVMH, has strongly criticised the European Union for its slow and shaky start in trade talks with the United States. Speaking at a French parliamentary hearing, Arnault said the EU’s handling of negotiations aimed at reducing US tariffs had begun badly. He warned that delays and weak strategy could hurt major European industries, especially luxury goods.
LVMH, the company Arnault leads, owns famous brands such as Louis Vuitton and Hennessy. The United States is LVMH’s biggest market. That’s why Arnault is deeply concerned about the 20% “reciprocal” tariffs introduced by President Donald Trump earlier this year. Although the tariffs have been temporarily reduced to 10% until July 8 to allow for negotiations, Arnault said that the EU’s approach has been far too slow compared to how quickly the United Kingdom secured a trade deal with Washington.
He urged the EU to take a more “constructive” approach in its talks with the Trump administration. According to him, both sides need to make “reciprocal concessions” to reach a fair deal, just as the UK has done. The British government recently finalised an agreement that included a tariff-free quota for steel exports and a reduced 10% tariff on cars shipped to the US.
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EU-US Talks Lagging Behind
While other countries like the UK and China have already made progress in trade talks with the United States, the EU is still trying to get going. For weeks, the talks were stuck. EU negotiators said they were unclear on what the US wanted. Only last week did they receive a letter from the Trump administration that outlined US demands.
Despite this, Sabine Weyand, the EU’s top trade official, has cautioned member states not to rush just for “quick wins.” But Bernard Arnault thinks moving too slowly is a mistake. He stressed that a deal is urgent for industries that depend on access to the US market.
He highlighted how the luxury sector is already suffering. Sales have dipped in both the US and China, and the new tariffs only add to the pressure. Arnault’s company, LVMH, is particularly vulnerable because most of its products are made in Europe. That includes luxury fashion, perfumes, and alcoholic beverages like Hennessy cognac.
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Jobs and Industries at Risk
Arnault explained that moving manufacturing to the US isn’t a realistic option for most luxury brands. The entire industry depends on European craftsmanship and facilities. If tariffs stay high or rise again after July, it could mean fewer sales in the US and big financial losses.
One example he gave was France’s cognac sector, which supports around 80,000 jobs. LVMH owns Hennessy, one of the world’s best-known cognac brands. Already hit by weaker demand in the US and China, Hennessy could face even more trouble if both markets close off due to trade disputes.
Arnault also raised concerns about the Chinese market, where an anti-dumping investigation is underway. China launched this probe in response to EU restrictions on Chinese electric vehicle imports. These rising tensions could lead to even more trouble for European exports.
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Calling the situation potentially “catastrophic,” Arnault warned that entire industries and thousands of jobs are at stake. While he has personal ties to President Trump, including having attended his inauguration, he said the EU must take the lead in finding a solution.
“We must do everything with Europe to prevent this,” he said. “Because the day it happens, it will be too late.”
