LVMH CEO urges de-escalation of trade tensions with the U.S.

Bernard Arnault, chairman and CEO of French luxury conglomerate LVMH, called on Thursday for a free trade zone between the European Union and the United States and said that unresolved trade tensions could seriously hurt European industries.

His remarks, in the wake of the tariffs announced by President Donald Trump, appeared to echo a similar call by Elon Musk on April 5 for a zero-tariff zone between the U.S. and EU. The EU has long pushed for a “zero-for-zero” trade agreement — with both sides dropping tariffs — but Trump has rejected the offer.

Speaking at LVMH’s annual shareholder meeting, Arnault said European leaders should negotiate “cleverly” with the U.S. administration and that national governments should take a more prominent role instead of than leaving negotiations solely in the hands of Brussels, the center of EU’s “bureaucratic power.”

France’s LVMH has for decades been the world’s dominant luxury group — known for products such as Moët & Chandon Champagne, Hennessy Cognac, Louis Vuitton handbags and Dior perfumes — but this week lost its title as the world’s largest luxury company to rival Hermès.