French luxury tycoon Bernard Arnault defends a trade deal between the United States and the European Union to avoid allegations of bias and affects European growth in the medium term.
In an opinion column published in the French Financial Daily on Wednesday, LVMH Moët Hennessy Louis Vuitton, the chairman and CEO of LVMH Moët Hennessy Louis Vuitton, described the agreement as a necessary compromise and believed it avoided a complete trade war.
The businessman admitted: “The recent trade agreement has been criticized. It is marked as asymmetric, defensive-even insufficient. I understand these concerns.”
“But, as the head of the European global business, I think it’s important to avoid breakdowns. This deal is an act of responsibility. It’s a good deal in the current geopolitical and economic context,” he added. LVMH owns Les Echos.
Arnault attended the second inauguration of U.S. President Donald Trump in January and visited the White House in May, where he served as an unofficial agent in trade talks, holding a meeting with senior European officials including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, in addition to speaking with Trump and senior officials.
After the deal, Merz made a note of his resignation, saying it was “more impossible.” But French Prime Minister François Bayrou was more public, calling it a “dark day” in his post on X.
Meanwhile, economists warned about the implications of the agreement.
Olivier Blanchard, Robert M. Solow, professor emeritus of economics at Massachusetts Institute of Technology, called it a “failure” for the European trading group.
“When the laws of the jungle prevail, the weaker are more than accepting fate. But Europe may be powerful, whether it is one person or in an alliance with others. It must be prepared for the stormy waters. But it will eventually get a better deal and send a powerful message to the world,” he wrote on X.
Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, Macroeconomics, predicts that tariffs will reduce the EU’s GDP by about 0.5%, adding that this is worse than we previously assumed. ”
Arnard said critics need to accept that normal rules no longer apply, which appears to be a reference to Trump’s quick and loose diplomatic approach, which has caused him to wield the threat of a unilateral tariff threat to EU goods.
“To be clear: Europe is not seeking this deal. Europe does not require rewriting international trade rules to fit short-term interests. But when face-to-face with partners willing to abandon existing norms, Europe must persevere without causing a break,” Arnault said.
“The committee did not reach a perfect deal, but it fulfilled the necessary agreement. It protected the basic interests, avoided a full confrontation and maintained a stable benchmark,” he added. “I know President Trump. He will not retreat from a prolonged standoff.”
Arnault’s tone contrasts with comments from January, when he predicted that a “thriving” U.S. market would help his luxury empire restore this year.
“I feel the wind is blowing. It’s a little cold when you return to France after spending a few days in the United States. In the United States, you feel welcome with open arms,” he said in a press conference.
Arnault eased his enthusiasm after Trump’s “Liberation Day” announcement in April, which put the global market at the tail, but he maintained a pragmatic approach to dealing with the U.S. government, announcing last week that LVMH plans to open a second factory in Texas in early 2027.
Arnault has known him since he was a real estate developer in the 1980s, inviting the president to open his first Louis Vuitton factory in Texas in 2019.
He has set his sight in the next battle: ensuring more favorable conditions for wine and spirits, which are excluded from trade agreements, a decision called “harmful.”
“I hope that the ongoing discussion will provide some clear information. The mutual recognition of our protected origins and fair treatment of exports is not only an economic matter, but also a matter of cultural sovereignty,” he said.
