The CEO of the world’s number one luxury goods company LVMH denounced on Tuesday the planned increase in taxes on French companies, believing that it is a matter of “taxing made in France” and “pushing outsourcing”.

Back from the United States where he attended the inauguration of Donald Trump, Bernard Arnault, CEO of the world’s number one luxury company LVMH, denounced the planned increase in taxes on French companies, believing that it is a question of “taxing made in France”, which, according to him, is “ideal […] to encourage relocation”. A statement made as part of the presentation of the LVMH group’s 2024 annual results, On Tuesday, January 28, in Paris, to be seen in our video at the top of the article.

“I’m coming back from the USA and I could see the wind of optimism that reigned in this country. And when you come back to France, it’s a bit of a cold shower,” said the man who was seen with his children Delphine, CEO of Dior, and Alexandre, deputy CEO of Moët-Hennessy, among the dozens of guests closest to Donald Trump during the American president’s inauguration ceremony.

“In the US, taxes will go down to 15%, workshops are subsidized in a series of states and the president [Trump] encourages that,” said the head of the French luxury giant. “When we come back to France and see that we are preparing to increase taxes by 40% on companies that manufacture in France, it’s incredible. So we are going to tax made in France. To cool down energies, it’s hard to do better. To encourage relocation, it’s ideal,” he denounced.

“Everyone must take part in the efforts”

“I understand Bernard Arnault’s anger,” government spokesperson Sophie Primas assured on Wednesday, nevertheless considering that “everyone must take part in the efforts. ” “I understand his anger. I understand that in the budgetary condition in which we find ourselves, everyone must take part in the efforts,” the minister said during the minutes of the Council of Ministers.

Bernard Arnault referred to the corporate tax surcharge, planned for the largest companies, in the budget currently being prepared in France for 2025. This surcharge should bring in some 8 billion euros to the State this year.

For companies with a turnover of more than 3 billion euros, such as LVMH, this surcharge would result in an increase of around 40% in the corporate tax rate. However, the government has indicated that it only wants to apply it for one year.

“We are under heavy pressure from the American authorities”

“Nobody believes it, once we have increased taxes by 40%, who is going to lower them by 40%?” Bernard Arnault said on the sidelines of the press conference.

“We are strongly solicited by the American authorities to continue our [workshop] installations,  “ he added, and, “in the current environment, it is something that we are looking at seriously. ” “We have proposed other solutions [than this surcharge, Editor’s note], but the bureaucracy…”, he said, without giving further details.

Asked about possible customs duties imposed by the United States, he replied that he “prefers not to speak out and tries to act quietly. “

After a turbulent last year, LVMH announced on Tuesday a 17% drop in its annual net profit in 2024, to 12.55 billion euros, and a 2% decline in its annual turnover, to 84.7 billion euros.