LVMH Eyes Expansion in U.S. Amid Favorable Conditions

Luxury giant LVMH is considering expanding its production in the United States, CEO Bernard Arnault revealed, highlighting the country’s "wind of optimism" compared to the "cold shower" of higher corporate taxes in France. While LVMH is renowned for its "made in France" luxury goods like handbags and champagne, its U.S. production remains limited to three Louis Vuitton workshops and select Tiffany jewelry-making sites.

Arnault, LVMH’s primary shareholder, expressed openness to growing the company’s U.S. footprint, citing strong encouragement from American authorities and favorable tax conditions. Speaking after presenting quarterly results, Arnault stated that expanding in the U.S., a key market accounting for 25% of LVMH’s sales, is under serious consideration.

Arnault and his family recently attended President Donald Trump’s second-term inauguration, sitting among prominent figures like Elon Musk and Mark Zuckerberg. Arnault has maintained a long-standing relationship with Trump, previously inviting him to inaugurate a Louis Vuitton workshop in Texas during Trump’s first term.

The U.S. market’s dynamism contrasts sharply with France’s bureaucratic challenges and plans to tax large corporations further, which Arnault criticized for being anti-business. Reflecting on his recent trip to the U.S., Arnault noted, “You feel the optimism there, but returning to France feels like a cold shower.”

LVMH employs over 40,000 people in the United States and sees the region as a strategic hub for growth, driven by supportive policies and a robust economy. As the company evaluates expanding its production capabilities, the move aligns with its vision to strengthen its global presence while navigating contrasting economic climates.