EU must concede to Trump to avoid tariffs, says Arnault
- Bernard Arnault, CEO of LVMH, called for the EU to be more flexible in trade negotiations with the U.S. to protect jobs.
- The European Union aims to cut tariffs on non-agricultural goods to zero as part of its efforts to revive trade talks with the U.S.
- Arnault's lobbying efforts reflect a wider need for Europe to negotiate concessions to avoid tariffs that could harm key industries.
In May 2025, during a parliamentary hearing in France, LVMH CEO Bernard Arnault expressed concern over the European Union's rigid approach to U.S. trade demands. He emphasized the importance of negotiating concessions to avoid tariffs that could threaten European jobs, particularly in sectors like cognac and wine, which are significantly affected by ongoing trade tensions with the United States. Arnault's comments come as the EU seeks to revitalize trade discussions with Washington, having sent a revised proposal aiming to cut tariffs on non-agricultural goods to zero, thus aligning economic priorities between the two regions. However, the EU’s economy commissioner indicated that this would lead to higher barriers than previously existed and highlighted the challenges presented by a more stringent trade environment. Arnault highlighted how Britain's recent trade negotiations effectively improved access for badly impacted sectors, contrasting this to the EU's current strategy. He urged the EU to adopt a more constructive attitude in its dealings with the U.S., using what he described as his "modest means and contacts" to lobby for a favorable outcome. The remarks follow the EU's attempts to revive trade negotiations which had stalled, noting that success depends on the willingness to make reciprocal concessions in the talks. The U.S. remains a vital market for LVMH, representing 25% of annual sales, underscoring the stakes involved for European businesses facing potential tariffs. In his push for cooperation, Arnault did not disclose details about personal communications with President Donald Trump or a recent visit to the White House. Nevertheless, his lobbying efforts speak to the intense scrutiny and pressure faced by European companies to navigate an uncertain trade landscape. Given the critical nature of these discussions, there is a growing sentiment in Europe that a collaborative approach is necessary to maintain competitive advantages and protect jobs threatened by international trade disputes. The backdrop to these negotiations includes a complex interplay of economic strategies between Europe and the U.S., particularly in light of rising protectionism and shifting geopolitical dynamics. Both sides will need to carefully consider their negotiating positions to foster an agreement that respects mutual interests while addressing industry-specific concerns. France and other EU nations will have to weigh the potential business impacts against political considerations, mindful that failure to reach a compromise could result in detrimental tariffs that might exacerbate current economic challenges. Ultimately, the overall success hinges on each side recognizing the significance of trade relations in a global economy increasingly characterized by interdependence and shared economic futures.