A fascinating special report has highlighted the deep connections between the owner of one of the world’s largest jewellery companies and US president Donald Trump.
The report, published by the Wall Street Journal, details the shockingly strong relationship between Louis Vuitton Moët Hennessy (LVMH) chairman Bernard Arnault and President Trump.
The friendship began in the early 1980s, when Arnault, living in New York, met Trump at a charity dinner at the Plaza Hotel. Both were aspiring property moguls at the time.
Later that decade, Arnault shifted his focus to luxury brands, purchasing Christian Dior and beginning his acquisition of LVMH. He also invested in real estate, including properties on Fifth Avenue, close to Trump Tower.
In the weeks before Trump’s inauguration in 2017, Arnault was identified as one of the first business leaders to travel to the US to pay homage. His son, Alexandre Arnault, who had known Trump’s son-in-law Jared Kushner for years, joined him.
There are no signs that this partnership has weakened in recent years; in fact, it seems to have only grown stronger.
“The day after President Trump survived an assassination attempt in Pennsylvania last summer, he received a call from a familiar French voice. It was Bernard Arnault, owner of the globe-spanning luxury empire LVMH,” writes Nick Kostov.
“Arnault wanted to check in on the man he had known for decades. Trump was also in the middle of a fierce presidential campaign, as well as several criminal proceedings.”
He continued: “The phone call from Arnault sent a clear signal: The luxury titan was sticking with Trump through thick and thin.”
This political support was again emphasised during Trump’s second inauguration in January, when Arnault appeared at the Capitol Rotunda alongside his wife, Hélène Mercier-Arnault, and two of his five children, Alexandre and Delphine.
“Who would refuse an invitation from the president of the United States to attend their inauguration?” Besides, I’ve had a longstanding relationship with him,” Arnault said.
The connection between the children of the unlikely pair continues with daughter Ivanka Trump, who is close with Arnault’s daughter, Delphine, and a major supporter of the Dior brand.
The report reveals that when LVMH purchased Tiffany & Co. in 2021 in a landmark billion-dollar deal, Arnault personally informed Trump of a major upcoming deal beforehand.
Among the other interesting observations, the Trump Organisation is the landlord of the Louis Vuitton store in Midtown Manhattan. Trump’s well-known ‘air rights’ agreement above the Tiffany & Co. flagship store is also highlighted. The current president was reportedly so pleased with the deal that he named his daughter Tiffany after the brand — which Arnault now owns!
Tension & Tariffs & Tiffany
The report also details the significance of Trump’s proposed steep tariffs on European luxury products, which could negatively impact LVMH.
It’s suggested that Arnault has worked to leverage his personal relationship with Trump to protect LVMH from trade wars. This involves LVMH’s significant investment in the US, with a Louis Vuitton factory in Texas being one of 14 factories.
“It’s evident that we’re being strongly encouraged by US authorities to continue expanding our presence there. And I must say that, given the current environment, this is something we are seriously considering,” Arnault explained in January.
In 2019, Trump imposed tariffs on European goods; however, he spared luxury items such as champagne and handbags due to Arnault’s investment in US production.
When French media asked Trump why the tariffs were so selective, he conceded he had been discussing the issue with Arnault.
“I can’t tax him [Arnault] because he moved to the United States. He was very smart. He was way ahead,” Trump said.
The report speculates that future tariffs may be determined in part by the relationship between the two unlikely friends.
“With Trump now in office and warning of steep tariffs on European goods, the question is whether Arnault can leverage his connection to keep his luxury conglomerate out of any trade wars,” Kostov continues.
“Tariffs would be a blow to Arnault’s empire, whose largest market is the US — equal in size to all of Europe combined. Trump has called the European Union’s trade surplus with the US an ‘atrocity’, but he also often leans on personal relationships to guide his policy.”
LVMH recently reported a group revenue decline of 2 per cent over the past financial year, reaching €84.68 billion ($AUD141.73 billion).
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Credit: jewellermagazine.com
