Arnault has been an outspoken fan of Trump’s plans to woo manufacturers and has slammed the French government and the European Union for, respectively, raising taxes and enacting regulations that, in his words, “penalize our economic sectors.”
French President Emmanuel Macron had urged European business to freeze investments in the U.S. in response to Trump’s tariffs.
The French luxury sector is particularly exposed to the ongoing trade war as it is heavily reliant on exports. But while LVMH registered a decline in sales in the first quarter of 2025, Hermes’ sales went up in the same period, according to earnings reports released last week.
Amid investor concerns over LVMH’s slump, Hermès last week overtook the Arnault-owned conglomerate as France’s most valuable luxury house and the biggest company listed on the French CAC40. The two traded positions over the following days.
