Paris – Paris (AP) – Bernard Arnold, Chairman and CEO of the French luxury agency LVMHH, called on a free trade region between the European Union and the United States on Thursday and said that unresolved trade tensions could seriously hurt European industries.
In response to President Donald Trump’s tariffs, his comments made the Elon Mask on April 7 for the zero tariff zone between the United States and the EU. The EU has long been pressing on the “zero-zero-” trade agreement-the new party excludes the tariff-but Trump has rejected the proposal.
Speaking at the LVMH’s annual shareholder meeting, Arrot said that European leaders should “cleverly” the US administration “cleverly” and the national government should take a more prominent role in the hands of Brussels, the center of the EU “bureaucratic power”.
LVMH in France had been the dominant luxurious group of the world for decades – known for products like Mota & Chandon Champagne, Henesi Kognac, Louis Viton Handbags and Dyer Perfumes – but this week lost its title as the world’s largest luxury company to compete Hermes.
“Europe is not guided by any political power, but is governed by a bureaucratic power that unfortunately imposes all the member states on the state and imposes the rules that punish our business sector,” said 76 -year -old CEO.
The European Union’s Executive Branch discusses the trade agreement on behalf of the European Commission for all 2 27 members state. Block is the largest trading entity in the world.
LVMH shares declined by 7.8% early this week, after an unexpected decrease in the sale of first-third.
Arnold says the company may be forced to expand US activities. “If we fail to negotiate with European intelligence, we will be forced to increase our American production to avoid tariffs,” he said.
In 2019, LVMH transferred parts of its production to the United States by opening a Louis Viton workshop in Alvarado, Texas, in the first term of Trump. Trump and Arnaults visited this facility together, promoting US production as a symbol of revival.
However, Thursday, Arnault acknowledged that the Texas site was still proficient. According to the documents presented at the meeting, 25%of the total sales of LVMH in the United States.
Arnold also criticized France’s proposed corporate tax growth, calling them “tax made in France” and warned that they could press the companies to move abroad.
He praised the US model by quoting low-tax and state-backed industrial investment. “When you returned to France after you spend some days in the United States, it’s somewhat cool shower.”
Outside the Louvre Museum Conference Hall, where the meeting was held, a few dozen protesters demanded higher taxes on rich people, as well as a “tax rich” sign and a huge doll of Arnault was portrayed as a thief, a rope around his chest and behind his back.
“France can bring $ 25 billion on 2% tax on enormous wealth in France,” Group 350.org spokesman Fanny Petitbone says. “It will be enough to invest in public service and to accelerate a power transfer that benefits everyone.”
Leave a Reply