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Trump’s tariff threats are on the mission of the Young Arnault to repair LVMH drink unit

By Mimosa Spencer and Tassilo Hummel

Paris (Reuters) -Alexandre Arnault absorbs a key role in LVMH’s $ 6 billion wine and spirit activities, just like US President Donald Trump runs the risk of unleashes a trade war, which makes a reversal effort complicated that the future of the 32-year-old in The realm of his father could determine in the realm of the 32-year-old.

The alcoholivisie, whose brands Moët & Chandon Champagne and Hennessy Cognac include, has seen its income fall for two consecutive years and the operational win with more than a third in 2024.

The challenges will probably only become more difficult if Trump’s newly imposed rates on China contribute to an economic delay there, and if he follows endangered levies on Europe.

Alexandre Arnault, one of the LVMH CEO Bernard Arnault’s five children fighting for more responsibility in their father’s realm, said Reuters that he needed a few months to draw up a plan.

“Give us 100 days to wrap our head around it and understand the company … Because it is a company that needs a lot of restructuring,” he said last week on the sidelines of the annual results of the group.

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The United States are the largest market of the wine and spirit unit by sales, with just over a third of the high-end cognac and champagne that are sold there. The unit is good for less than 10% of the sale of LVMH Group and is vulnerable to trade tensions.

Commission data shows that LVMH’s Cognac Business increased deliveries to the US in December, because distributors built up stocks.

The luxury groups of France were hit in Trump’s first presidential term when he focused on champagne and handbags on a French digital service tax that he decided that American companies were harming.

“Although we continue to believe that the American spirit market will restore further, rates will bring uncertainty in the short term,” Barclays wrote in a note on Tuesday.

Trump binds

Bernard Arnault and members of his family have cultivated personal ties with Trump. Bernard, his wife Helene Mercier, Alexandre, and daughter Delphine, who runs Dior, were immediately behind the former presidents of America on Trump’s inauguration.

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Bernard Arnault said a “wind of optimism” in the United States last week and said last week that LVMH increased to production capacity there.

Alexandre took over the deputy CEO of the Alcohol Unit on Monday, in addition to old LVMH Finance Chief Jean-Jacques Guiony, a veteran from the industry. Alexandre marked the change on his Instagram account with a post showing that he was on his way to one of LVMH’s Grand Cru Estates in Burgundy.

The shedding of the struggling company was “not in the agenda,” Bernard Arnault said last week in response to recent speculation LVMH could again visit his ties with DioGeo, which has a minority stake in the beverage department. He said he would keep a close eye on the following movements of his son and Guiony.

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