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Tuesday, Feb 25, 2025
Outside the box.
LVMH Explores Expanding US Operations Amid France's Rising Corporate Taxes
LVMH CEO Bernard Arnault signals a potential increase in US production amid dissatisfaction with France's fiscal policies.
LVMH CEO Bernard Arnault has indicated that the luxury goods conglomerate is 'seriously considering' expanding its production capabilities in the United States.
Arnault praised the 'wind of optimism' in the US, contrasting it with what he described as the 'cold shower' of rising corporate taxes and bureaucracy in France, where LVMH is headquartered.
Although LVMH’s current US presence is limited to three Louis Vuitton workshops and a few Tiffany jewelry-making sites, Arnault expressed openness to increasing the company’s footprint in the country.
He emphasized that US authorities are strongly encouraging the company to enhance its presence, particularly in light of favorable tax conditions.
Arnault also reflected on his long-standing relationship with US President Donald Trump, noting his involvement in the ribbon-cutting of a Louis Vuitton leather atelier in Alvarado, Texas, during Trump’s first term.
LVMH employs more than 40,000 people in the US, which accounts for 25% of the company’s total sales.
Arnault's comments come amid frustration in France, where recent proposals to raise taxes on large companies to address the national budget deficit have led to discontent among some business leaders.
Arnault praised the 'wind of optimism' in the US, contrasting it with what he described as the 'cold shower' of rising corporate taxes and bureaucracy in France, where LVMH is headquartered.
Although LVMH’s current US presence is limited to three Louis Vuitton workshops and a few Tiffany jewelry-making sites, Arnault expressed openness to increasing the company’s footprint in the country.
He emphasized that US authorities are strongly encouraging the company to enhance its presence, particularly in light of favorable tax conditions.
Arnault also reflected on his long-standing relationship with US President Donald Trump, noting his involvement in the ribbon-cutting of a Louis Vuitton leather atelier in Alvarado, Texas, during Trump’s first term.
LVMH employs more than 40,000 people in the US, which accounts for 25% of the company’s total sales.
Arnault's comments come amid frustration in France, where recent proposals to raise taxes on large companies to address the national budget deficit have led to discontent among some business leaders.
