Fashion is about learning how to speak in the “art of trading” era, and when to keep quiet.
US President Donald Trump on Friday decided he wanted more from the European Union and recommended a 50% tariff on imports starting June 1.
From WWD
It would be a smashing collection of profits at the borders of key markets in Europe’s luxury homes, but the reaction from fashion was so unsettled that it had not existed.
C-Suite learns what it is that it keeps businesses away from the fiery world of politics.
When Doug McMillon, president and CEO of Walmart Inc., said earlier this month that the discount giant could not “absorb all the pressure” of tariffs and could suggest prices would rise, and Trump would be shot hard.
He pointed out Walmart’s $19.4 billion profit last year, saying Walmart and China should collectively “eat tariffs.”
“I’m watching, and so are your customers!!!” the president warned.
Target Corp. CEO Brian Cornell reported revenue the following week, and while undoubtedly they all feel the same pressure, he notes the topic of tariff-related price increases and calls them “last resorts” alone.
It seemed sufficient to give the company a pass from Trump.
When fashion speaks up, it is not a direct response to any action, but is often preferred in a more general context for some wheel and idea of trading.
LVMH Chairman and CEO Bernard Arnaud urged the European Union to make concessions to trade talks with the Trump administration during a hearing in the French Senate.
“It’s very important for Europe to reach an agreement with the US, and so far, I think things seem to be off to a relatively bad start,” he said. “The negotiations must be processed constructively. They must aim to achieve the outcome, and therefore with mutual concessions.”
Arnaud cited the example of Britain, the first foreign country to reach a deal with Trump.
“I hope that with my limited resources and contacts I can convince Europe to adopt a similarly constructive attitude,” Arnaud said. “For France, especially for cognac and champagne, the risk is major, but especially for cognac.”
Several workers at LVMH’s Champagne House performed a strike this month after Moet Hennessy, the luxury conglomerate wine and spirits division, announced plans to reduce the workforce with 1,200 employees in response to difficult market conditions. Unit revenues fell 8% in 2024 under organic conditions.
“In France, we feel we don’t really recognize the problem. But today, around 80% of cognac sales around the world are made in China and the US,” Arnaud said. He warned that unless an agreement is reached, 80,000 Wein Glowers could be affected in the Challente area where Cognac is originally from.
Arnaud has known Trump for many years, and during his first term at the White House he established a manufacturing facility in Texas and attended his second inauguration.
But these connections have so far only been a geopolitics game.
Trump on Friday recommended in a social media post on Friday that he would “repeat the 50% tariffs starting June 1st and June 1st,” saying that transatlantic trade talks “will not go anywhere.”
Imports from the EU were hit with 20% tariffs when Trump rolled out a global trade sort on “liberation day” on April 2, but that cut negotiations to 10%.
Washington’s hardball, yet a start and stop approach to trade, has begun consultations with countries around the world, but most of the deals have not been hit.
Born in Scotland, Trump gave Britain a break, locking import duties at 10% and clashed into a “economic prosperity” trade contract earlier this month, in which several tariffs were completely wiped out.
However, it still does not shield the operations of British brands across the global fashion industry.
London-based Burberry, for example, could be subject to some degree of tariffs as it produces the majority of its collections between the UK and Europe.
Trump reiterated that the EU was formed for “the main purpose of using the US in trade,” and the Bullock said it was “very difficult to deal with.”
“Their strong trade barriers, VAT taxes, ridiculous corporate punishments, non-monetary trade barriers, financial manipulation and unfair and unfair litigation against American companies have a trade deficit with the United States exceeding $250,000,000 a year.
That figure underestimates the deficit in products with the EU, which the US trade representative’s office signed with a “$235.6 billion increase in 2024 and a 12.9% increase in 2023 ($26.9 billion).”
Trump had recommended 50% tariffs on EU goods, but these numbers have a lower way of travel.
China saw tariffs on its goods rise up by up to 245% this spring after several tart tariffs increased. However, to facilitate negotiations, these tariffs fell to 30% for 90 days.
Richmont is based outside the Swiss EU, but many of the companies in its portfolio are manufactured based in France and Italy.
The company did not comment on tariffs, but its founder and chairman Johann Rupert said earlier this month that he understands what Trump is trying to do.
“We believe the US uses tariffs in its trading way, and we believe there are wise people in the US Treasury Department that do not want a complete halt in global trade,” Rupert said following Richmont’s 2025 results announcement.
Rupert added: “There are imbalances that need to be addressed. With the US unable to blow up nearly $37 trillion in debt, President Trump is doing what it takes to deal with the overall situation.”
Richmont, which produces all Swiss watches and some gems, is still nerve-wracking to a massive price rise until he sees where tariffs land. Rupert said he hates dramatically raising prices everywhere, fearing it would damage relations with local customers.
A few days ago, Rupert traveled to Washington, DC with South African President Cyril Ramaphosa and a delegation of golf enthusiasts from the country. They spoke primarily about South Africa’s violence, and not about tariffs at least publicly, but more security and the need for Elon Musk’s Starlink satellite internet service.
It is private that there is a high chance that an actual transaction will be launched.
– Contributions from Luisa Zargani and Jennifer Weil
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