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(Bloomberg) -- French billionaire Bernard Arnault, whose group LVMH owns Champagne labels like Moët & Chandon and Veuve Clicquot as well as Hennessy Cognac, called on the European Union to strike a deal with the US on tariffs to defend the region’s winegrowers.
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Speaking on the sidelines of LVMH Moët Hennessy Louis Vuitton SE’s annual shareholders meeting in Paris Thursday, Arnault seemed to suggest that EU leaders weren’t pushing hard enough for an accord. The EU and US have made scant progress bridging trade differences this week. Officials from President Donald Trump’s administration indicated that the bulk of the US tariffs imposed on the bloc will not be removed, while providing little clarity on their goals for the negotiations, Bloomberg reported earlier.
“I have the impression that our British friends are more concrete in the negotiation progress,” Arnault said. “This requires the utmost attention of the governments in Europe and notably the French government since there would be dramatic social consequences if an agreement isn’t found, in particular for our wine-growing culture.”
The wines and spirits industry outlook has grown gloomier since Trump this month imposed 10% tariffs on imports from the EU, while pausing plans for a 20% levy for 90 days. The UK currently faces the same tariffs as the EU, but it runs a trade deficit in goods with America, putting it in a different position to the EU. Earlier this month, the bloc dropped plans to target American whiskey with counter-tariffs after Trump threatened a 200% tariff on Champagne and European wine.
LVMH’s spirits division saw the worst performance of all units in the first quarter, with organic sales dropping 9% amid lackluster demand in the US and a separate tariff standoff with China for Cognac. Arnault, the controlling shareholder of the group, pleaded for a free-trade zone between the US and the bloc, but expressed his frustration over why that might be difficult.
The EU is led “by a bureaucratic power, which spends its time editing regulations” he said, adding that member states like France add even more red tape that hurts businesses like agriculture.
“There isn’t a week that goes by where they don’t face a new piece of regulation,” he said.
The executive also suggested that the European Commission, which handles trade matters for the EU, is prioritizing some sectors more than others, an indication of tensions within the bloc — with member states that have different interests.