U.S. President Donald Trump has announced plans to impose mutual tariffs by country, while French luxury conglomerate LVMH is considering the transfer of some production facilities to the United States. As a precautionary measure to respond to tariff risks, discussions are underway to expand the domestic production ratio of major brands such as Louis Vuitton and Tiffany & Co.
On the 15th (local time), according to Business Insider, Cecile Bonan, LVMH Chief Financial Officer (CFO), noted during an earnings call with investors that "there is room to expand Louis Vuitton’s production facilities in the U.S." Currently, Louis Vuitton produces about one-third of its total supply in three factories in the United States, and Tiffany & Co. also manufactures most of its products there. However, Bonan explained, "There remains some room to transfer certain quantities from Europe to the U.S."
He also added, "Expanding production in the U.S. is not something that can be accomplished in the short term," noting that there are practical constraints such as hiring, training, and securing skilled workers. He emphasized a focus on gradual adjustments rather than rapid changes.
Earlier in January, Bernard Arnault, chairman of LVMH, stated after an earnings announcement that "the possibility of transfer to the U.S. could be considered," but after controversy grew, clarified that he had never said LVMH would be transferred.
The U.S. is one of LVMH's largest markets, accounting for 25% of its total sales. However, the earnings for the first quarter of this year declined by 3% compared to the previous year. The wine and spirits sector fell by 9%, while the fashion and leather goods sector decreased by 5%, showing poor performance. Shortly after the earnings announcement, LVMH's stock price dropped by about 8% and is down approximately 39% compared to last year.
On the 9th, President Trump announced that he would postpone the anticipated mutual tariff measures for 90 days. As a result, the 20% tariff on European Union (EU) imports has been suspended for now, but global corporations are accelerating strategic adjustments, such as expanding domestic production bases, in preparation for long-term tariff burdens.