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<\/p>\nOne of the world\u2019s richest men was at Trump\u2019s inauguration, but he is no longer impressed.<\/p>\n
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One of the world\u2019s wealthiest men and a fashion tycoon who Donald Trump counts among his most prominent international admirers has delivered a stark warning to the president.<\/p>\n
Bernard Arnault, CEO of LVMH and the fifth-richest person on the planet, told shareholders at the company\u2019s annual general meeting in Paris that the conflict in Iran is pushing the global economy toward \u201cworld catastrophe.\u201d<\/p>\n
He complained that his pal\u2019s Middle East crisis had already left a visible mark on his business, cutting the luxury giant\u2019s first-quarter organic sales growth in half, to just one percent.<\/p>\n
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President Donald Trump and Bernard Arnault.<\/p>\n
WWD\/Penske Media via Getty Images<\/p>\n
\u201cThe world is now in a pretty serious crisis in the Middle East,\u201d Arnault, suddenly a budding diplomat, said. \u201cEither it\u2019ll be a world catastrophe with very serious and very negative economic impact\u2014in which case, who can say how 2026 will unfold\u2014or it will be resolved more rapidly in some shape or form that we all hope for, even if it doesn\u2019t seem to be easy, in which case, business will recover and resume their normal course.\u201d<\/p>\n
The comments carry particular weight given Arnault\u2019s relationship with the president. Sources previously told NYNext that Trump \u201creally looks up to\u201d the French tycoon and \u201cwants to make him happy.\u201d <\/p>\n
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VMH stock, which began the year above 700 euros a share, has since fallen 35 percent following Trump\u2019s first tariff announcement in February, according to The New York Times. <\/p>\n
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Arnault was joined on the shareholders\u2019 stage by son Alexandre, deputy CEO of Mo\u00ebt Hennessy, and daughter Delphine, CEO of Dior.<\/p>\n
![\"Ivanka](\"https:\/\/www.europesays.com\/people\/wp-content\/uploads\/2026\/09\/BOIOH4F4OBDRPPESYJFJEKBJSE.jpg\")
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Ivanka Trump and husband Jared Kushner visit a new Louis Vuitton factory in Alvarado (40 miles south of Fort Worth), Texas, in 2019.<\/p>\n
NICHOLAS KAMM\/AFP via Getty Images<\/p>\n
Ivanka Trump\u2019s husband, Jared Kushner, has a long-standing friendship with Alexandre and Arnault\u2019s other son, Fr\u00e9d\u00e9ric, CEO of TAG Heuer. This predates his marriage. <\/p>\n
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Arnault attended Trump’s 2025 presidential inauguration with his children, Delphine,left, and Alexandre, center.<\/p>\n
Alexandre strengthened those bonds during his time running Tiffany\u2019s out of Manhattan, regularly spending time with Jared and Ivanka, and later moved a Louis Vuitton store into a Trump Organization building. Delphine Arnault, meanwhile, bought a stake in Thrive Capital, the venture capital fund run by Jared\u2019s brother, Josh Kushner.<\/p>\n
If a resolution can be reached, Arnault said he expects growth to return in the second half of the year. But a ceasefire remains fragile, and the Strait of Hormuz\u2014through which around a fifth of global oil normally flows\u2014remains closed, acting as a bargaining chip for both Washington and Tehran. <\/p>\n
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The war in Iran has affected business, Arnault said.<\/p>\n
The head of the International Energy Agency told CNBC the effective closure of the strait represents the \u201cbiggest energy security threat in history.\u201d<\/p>\n
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The temporary New York flagship store for Arnault’s luxury fashion house, Louis Vuitton, is leased from The Trump Organization. The building was previously leased to Tiffany & Co., also an LMVH subsidiary.<\/p>\n
McKinsey Senior Partner Gemma D\u2019Auria told CNBC the conflict has created \u201ca double whammy of consumer sentiment declining, traffic declining, and spend declining\u201d across the luxury sector. <\/p>\n
The Middle East accounts for around mid-single digits of total sales for most major luxury companies\u2014but profitability in the region tends to run higher, meaning the hit to bottom lines could be more severe than headline figures suggest. <\/p>\n
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