LVMH's Arnault Holds Brussels Responsible for US-EU Tariff Stalemate

LVMH CEO Bernard Arnault has warned that escalating trade tensions between the United States and the European Union over tariffs could have severe consequences for many companies, particularly if negotiations fail. Arnault placed the blame for any breakdown in talks squarely on Brussels, stating that failure to find a resolution would be 'Brussels' fault.' He emphasized the urgent need to restore free trade and trust between the U.S. and Europe, as LVMH derives about a quarter of its revenue from the American market. The company has already experienced a 36% decline in its share price, largely due to investor fears over President Trump's aggressive tariff policies and the risk of a U.S. recession. Arnault, who had previously praised Trump for supporting economic growth, now appears more critical amid the uncertainty caused by the tariffs. He also indicated that LVMH may need to shift production to the U.S. to mitigate the impact of potential tariffs if no agreement is reached.