LVMH is considering moving some production capacity to the US to mitigate the impact of potential tariffs proposed by the Trump administration. The CFO, Cecile Cabanis, emphasized that while there’s room for increased production, transitioning to more US manufacturing involves challenges like recruiting and training skilled labor. LVMH owns three production facilities in the US, providing up to a third of its supply. CEO Bernard Arnault expressed earlier considerations surrounding US relocation but later retracted intentions of a complete move, amid backlash.
LVMH's finance chief indicated the company is exploring the possibility of increasing US manufacturing to reduce vulnerability to potential tariffs from Europe.
Increasing US production is complicated by recruiting and training needs, but LVMH sees potential for more manufacturing in the States.
LVMH CEO Bernard Arnault previously mentioned a possible US shift, noting the business landscape there is more optimistic, yet clarified the company won’t relocate entirely.
Currently, LVMH has three US production facilities, with room for expansion in both Louis Vuitton and Tiffany & Co. operations.
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