Manufacturing outside Europe hasn’t harmed LVMH-owned Louis Vuitton either. The brand already has three large factories in America that produce handbags for the local market. These purses carry a “made in U.S.A. of imported materials” label and shoppers don’t seem to mind.
LVMH’s Arnault said the company might move even more production to the U.S. in the future. Tax increases in France, coupled with the threat of tariffs, make producing in America more appealing. It is also good business considering LVMH makes a quarter of its sales in the U.S. these days.
Moving some manufacturing stateside would allow brands to avoid tariffs altogether. Luxury companies might even save money in the long term—energy is much cheaper in the U.S. than in Europe and subsidies are available in some states to build factories that provide local jobs.
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