LVMH Eyes U.S. Expansion Amid Strong Arnault-Trump Ties and French Tax Concerns

LVMH, under the leadership of Bernard Arnault, is contemplating expanding its production in the United States, leveraging a longstanding relationship between Arnault and Donald Trump that dates back to their early careers in real estate in the 1980s. This consideration arises amid concerns over potential tax increases for large corporations in France, contrasting with what Arnault views as a more favorable business environment in the U.S. LVMH already operates three Louis Vuitton workshops in the U.S., including a leather-goods workshop in Keene, Texas, inaugurated in 2019 with Trump in attendance. This Texas facility, dubbed the Louis Vuitton Rochambeau Ranch, represents a significant investment and commitment to American job creation. U.S. authorities are reportedly encouraging LVMH to further increase its production within the country, citing attractive tax conditions and a dynamic market. The U.S. is a crucial market for LVMH, accounting for a substantial portion of the group's sales. Arnault's ability to navigate the American political landscape, particularly his relationship with Trump, has been instrumental in protecting LVMH's economic interests, including averting tariffs on key products like champagne and cognac. This close relationship extends to family ties, with Arnault's son, Alexandre, being friends with Trump's son-in-law, Jared Kushner, and Ivanka Trump reportedly close to Arnault's daughter, Delphine.