Investing.com -- LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH) CEO Bernard Arnault issued a stark warning Thursday about the escalating U.S.-EU trade tensions, placing blame squarely on Brussels if negotiations over tariffs fail to produce a resolution.
Speaking at the luxury group’s annual shareholder meeting, Arnault said, “If Europe is not able to negotiate intelligently, there will be consequences for a lot of companies. It will be Brussels’ fault.”
According to Reuters, Arnault emphasized the urgent need to restore free trade and trust between the United States and Europe, noting that continued uncertainty is already taking a toll.
“Free trade with the United States and trust in trade must be restored,” he told shareholders.
As far as current business trends are concerned, Arnault said that the year "started well but worsened from March due to economic turmoil linked to tariffs."
The company now plans to focus on its most exclusive, high-end offerings, with Arnault warning that rising inflation and interest rates are likely to squeeze aspirational consumers more than its wealthiest clientele.
Arnault, 76, who earlier this year praised Trump for supporting growth and entrepreneurship, appears to be shifting tone amid rising trade tensions. Despite economic headwinds, LVMH shareholders showed strong confidence in his leadership, voting overwhelmingly—by 99.18%—to raise the company’s CEO age limit to 85, allowing Arnault to remain at the helm for nearly another decade.
Arnault’s warning comes as luxury giant LVMH, which generates roughly a quarter of its revenue from the U.S., grapples with a sharp downturn in market sentiment. The company’s shares have fallen 36% this year, dragged lower by growing investor concerns over President Donald Trump’s aggressive tariff policies and the broader risk of a U.S. recession.