The net worth of Bernard Arnault, Europe’s richest man, fell by $12.5 billion on Tuesday, following a threat by US President Donald Trump to impose 200% tariffs on French wines and champagne. The remarks triggered a sell-off in shares of luxury goods group LVMH.
LVMH shares under pressure
Paris-listed Louis Vuitton Moët Hennessy dropped by more than 3% to €565.10 on Tuesday, after Trump’s comments late on Monday evening. Throughout the trading session, the stock remained firmly in negative territory, fluctuating between losses of 2.5% and 3%.
LVMH owns several leading French luxury alcohol brands, including Moët & Chandon, Dom Pérignon, Château Cheval Blanc, Veuve Clicquot, Ruinart and Château d’Yquem.
Trump’s remarks and political context
Trump made the tariff threat on Monday evening when reporters in Miami asked him about French President Emmanuel Macron and his reluctance to participate in the Peace Council for Gaza.
Initially, Trump said that “nobody wants him” on the Council, before adding: “I will raise customs tariffs on their wines and champagnes to 200%. And he will join.”
The threat came just days after the US President announced plans to impose 10% tariffs on imports from eight European countries, citing their refusal to support his effort to gain control of Greenland.
Arnault’s global ranking remains unchanged
According to estimates by Forbes, Arnault’s net worth now stands at $169.8 billion, making him the seventh richest person in the world. Despite the sharp one-day loss, he remains by a wide margin the wealthiest individual in Europe.
Globally, Arnault continues to hold seventh place, although the gap with eighth-ranked Jensen Huang, CEO of Nvidia, has narrowed. However, Huang is unlikely to overtake Arnault in the immediate term, as Nvidia shares also declined on Tuesday.
Source: forbes