The EU has already interrupted its reprisals against the Trump steel and aluminum prices in the hope of negotiating an agreement in the three -month window, even if some of the American rates remain in place. Earlier this month, French President Emmanuel Macron called on European companies to interrupt investments in the United States until the situation could be “clarified”.
While most analysts attribute the uncertainty that affects investments in the Trump administration and its nebulous commercial objectives, Arnault says that it is the European Union which must assume the responsibility of finding an agreement that protects its interests without increasing the prices.
The United States is a major market for LVMH, so the company would only be exposed to a trade war between Brussels and Washington. Arnault said that if the two parties do not reach an agreement, higher prices would push LVMH and other European companies to move operations in the United States.
“If Europe cannot intelligently negotiate, there will be consequences for many companies,” said Arnault.
Arnault, who attended the inauguration of Trump in January, is an openly fan of the President’s plan to reduce administrative taxes and formalities to encourage manufacturers to move production in the United States. On Thursday, he criticized the EU as a “bureaucratic power which spends his time issuing regulations which are unfortunately imposed on all member countries … and which penalize our economic sectors”.
Arnault also said he wanted the EU and the United States to adopt a “free trade area”, similar to a call from his billionaire Elon Musk earlier this month. The president of the European Commission, Ursula von der Leyen, declared that the block had proposed a zero tariff agreement to zero on industrial goods.
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