Hermès to
open new French factory as rival LVMH threatens Trump-inspired US move
The Birkin
bag-maker doesn’t seem as put off by the threat of U.S. tariffs as its chief
rival does.
April 22,
2025 6:28 pm CET
By Giorgio
Leali
PARIS —
Hermès said Tuesday it will open a new factory in France, hiring 260 artisans
to staff a leather workshop in Normandy just as its just as its main
competitor, LVMH, is threatening to increase production to the United States at
Europe's expense.
The
announcement from the Birkin bag-maker comes just days after LVMH boss and
Europe's richest man Bernard Arnault said Europe needs to do more to prevent
its companies from offshoring to the U.S. to avoid any possible tariffs from
the Trump administration.
Trump
slapped tariffs on all imports into the U.S. earlier this month before
backtracking amid financial turmoil, suspending the highest tariffs proposed
for 90 days to create an opening to negotiate a trade deal.
Arnault has
been an outspoken fan of Trump's plans to woo manufacturers and has slammed the
French government and the European Union for, respectively, raising taxes and
enacting regulations that, in his words, "penalize our economic
sectors."
French
President Emmanuel Macron had urged European business to freeze investments in
the U.S. in response to Trump's tariffs.
The French
luxury sector is particularly exposed to the ongoing trade war as it is heavily
reliant on exports. But while LVMH registered a decline in sales in the first
quarter of 2025, Hermes' sales went up in the same period, according to
earnings reports released last week.
Amid
investor concerns over LVMH's slump, Hermès last week overtook the
Arnault-owned conglomerate as France's most valuable luxury house and the
biggest company listed on the French CAC40. The two traded positions over the
following days.
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