Posted on 05/23/2025 8:35:52 PM PDT by SeekAndFind
Bernard Arnault, the head of luxury giant LVMH, has strongly criticised the European Union for its slow and shaky start in trade talks with the United States. Speaking at a French parliamentary hearing, Arnault said the EU’s handling of negotiations aimed at reducing US tariffs had begun badly. He warned that delays and weak strategy could hurt major European industries, especially luxury goods.
LVMH, the company Arnault leads, owns famous brands such as Louis Vuitton and Hennessy. The United States is LVMH’s biggest market. That’s why Arnault is deeply concerned about the 20% “reciprocal” tariffs introduced by President Donald Trump earlier this year. Although the tariffs have been temporarily reduced to 10% until July 8 to allow for negotiations, Arnault said that the EU’s approach has been far too slow compared to how quickly the United Kingdom secured a trade deal with Washington.
He urged the EU to take a more “constructive” approach in its talks with the Trump administration. According to him, both sides need to make “reciprocal concessions” to reach a fair deal, just as the UK has done. The British government recently finalised an agreement that included a tariff-free quota for steel exports and a reduced 10% tariff on cars shipped to the US.
Despite this, Sabine Weyand, the EU’s top trade official, has cautioned member states not to rush just for “quick wins.” But Bernard Arnault thinks moving too slowly ...
(Excerpt) Read more at msn.com ...
You might have to give up $50 of profit on a $4000 purse that is the same purse you can buy in Target for $80, but without the branding.
Who cares. Only fruit cakes like that stuff.
Of course they can’t, those FUGLY bags are MADE IN CHINA now!
Right, but they can’t sew the label on in OH and then claim they were made in France.
That’s what he’s REALLY saying here.
Those brands have nothing to do with the products.
Now, they're all made in CHINA and shipped to France, to have a label sewn in/on.
They open a US company. They sell the purses to that company 10% above cost. Tariff that import cost is low. Then the US company marks it up $3,500. Tariffs avoided. Profits stay in the US where they are taxed low. Europe gets nothing.
Look at this family. How far they fall
Alex Arnault - Club meltdown
https://www.youtube.com/shorts/0zLfAUfJJfA
It’s because they can’t get over their disdain of Trump enough to be able to negotiate in good faith.
I assure you there is a world of difference between a handmade purse and a Target purse.
However both of them hold stuff.
I only know that I spent a shift in St Laurent store and the stuff they had, for thousands of dollars, and I didn’t see any difference in the quality between what they had and what Target sells.
I do not understand.
Some Louis Vitton purses are sewn in a factory in Alvarado TX.
I prepare taxes for several employees, and remember when they celebrated opening the factory.
In fact Indeed shows ten US cities that have LVMH manufacturing jobs.
Maybe Ohio doesn’t believe in corporate welfare, in return for jobs?
You see this company is the perfect example of tariffs not mattering to the retail price of an item. It costs nowhere near $100 to make one of their bags. And yet a tariff on the wholesale price of their bags is somehow a huge problem. These bags are not priced by the cost to make them. Nor does the tariff or shipping matter. Price is a marketing decision. Costs have nothing to do with it. But of course profit is retail minus wholesale. So profit matters a lot. The company is becoming a bit less profitable. Do I care? Nope.
LVMH owns luxury goods.
I looked at their brands and not one of them is a product that the US needs.
If they can’t make the goods here, then Europe can keep them. Also, people that buy this overpriced crap will buy it an any cost, so raising their prices to absorb tariffs will change nothing.
That birken bag scam is genius marketing. To get one of the coveted bags you have to buy a lot of other things they sell
The Texas location is worst performing. Can’t find skilled labor. Shoddy workmanship. They have to shred the purses on location.
I think they are shipping the Chinese to Italy so they can make high end brands in country.
Surprised France hasn’t done this.
And there you have it - those hit hardest by the tariffs are those who like to overpay for unnecessary luxury items...the tariffs will just give them bigger “bragging rights”🥸
The area draws from a decent market for unskilled labor, but has had to work hard to train its jobforce.
I do not see/hear of any purse shredding - where do you find this info?
Would be interesting to follow up.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.