Bernard Arnault’s Optimism for the U.S. Market and Its Impact on LVMH’s Position Under Trump’s Policies

Bernard Arnault’s optimistic view of the U.S. market highlights LVMH’s strategic approach in light of the potential impact of President Trump’s policies. In a recent earnings call, Arnault expressed confidence in the company’s performance in the U.S., despite uncertainties surrounding tariffs. This optimism is further emphasized by the presence of his family at significant events, such as Trump’s inauguration, indicating strong ties between them.

Arnault noted that luxury brands are welcomed with open arms in the U.S., in contrast to rising taxes in France, which are prompting LVMH to consider expanding its operations in America. He emphasized that American authorities are encouraging the company to enhance its presence in the U.S. market, demonstrating LVMH’s serious intentions in this direction.

Bernard Arnault and Donald Trump

As the luxury goods market begins to recover from previous downturns, the U.S. may become a key area for LVMH’s growth, especially as consumer preferences shift away from China. Currently, the U.S. accounts for about a quarter of LVMH’s revenue, and the company plans to open new stores there in 2025. However, looming tariffs could complicate this growth by increasing prices for luxury goods for American consumers—a challenge that many fashion houses are facing.

The historical ties between Arnault and Trump could play a significant role in navigating these challenges. Their past collaborations and mutual respect provide LVMH with a unique advantage in the U.S. market, particularly if tariffs are implemented. The luxury industry has already experienced price increases during the pandemic, which alienated some consumers, and the response to any new tariffs could significantly impact the sector.

Thus, despite the risks associated with potential tariffs, Arnault’s strong connections to Trump and his positive outlook on the U.S. market may position LVMH favorably amid changes in the luxury industry.