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International companies are remodeling their supply chains and strengthening their presence in the United States to align with the nationalist economic agent of Donald Trump and minimize the influence of his planned tariffs.
While the US president is preparing to take office for imports as soon as this weekend, top executives from Europe and beyond, including LVMH -ov Bernard Arnault and Shell’s Wael Sawan, say they expect to invest more in the US.
“We are strongly encouraged by the authorities to continue setting up [workshops]”Arnault said this week.” In the current environment, it’s something we look at seriously. “
LVMH, the second European most important company cited, makes most of its products in France and Italy, but opened three Louis Vuitton workshops in the US and invested billions in its American jewelry, Tiffany.
Arnault, who attended Trump’s inauguration in Washington last week, said he felt a “wind of optimism” to the US, and a return to France was a “cold shower”.
He and other executives spoke favorably about lower US taxes, cheaper energy costs and greater growth, especially compared to Europe.
Shell’s Sawan said his energy group, the second most interesting company on the list in the UK, planned to expand its American business. “I expect to continue to grow only [in the US] Because of the good momentum we notice about the support of tax structures and enabled regulations. . . Everyone will give us a beautiful tail wind and more confidence to invest, “he told the Financial Times.
In his speech on the inauguration this month, Trump vowed to “drill, child, drill” to use US oil resources.
While the president seeks to use tariffs to push companies to move to the US and follow other goals, starting with measures against Canada, Mexico and ChinaThe EU admitted that the groups were distracted by their own bureaucracy.
In article FT, Christine Lynry and Ursula von der Leyen, The President of the European Central Bank and the European Commission warned that regulation was an obstacle to investing, adding “we must operate in Europe cheaper, especially in terms of energy costs”.
The threat of US tariffs also encourages the balance of investment, according to executives and bankers, in an effort that extends in the sectors.
Sweden Hennes & Mauritz wants to buy more of its products from suppliers near its key markets, including the US, said that the director Daniel Ervér, adding that the retail group studied various “scenarios” to deal with tariffs.
“[We want] Flexibility in our supply chain so we can alleviate potential tariffs, “he told FT.” The world is less globalized. ”
Zayong Koo, Executive Vice President of the South Korean car manufacturer Hyundai, said last week, “It may take some time, but.
John Elkann, Chairman of the Stellantis car manufacturer, also flew to Washington on the eve of Trump’s inauguration, consumption Four days with the president and senior government officials. Days later, the owner of Fiat and Jeep announced an investment in the amount of $ 5 billion in the US; In December, after Trump’s elections, the group revealed a decision to reduce 1,100 jobs at the Jeep Factory in Ohi.
One European banker said: “Anyone who is not sufficiently represented in the US or is overly represented in Europe.
The rush of the company to expand to the US -in the defense against tariffs and benefits from potentially less difficult regulation, and a strong economy under Trump would follow an earlier increase in investment under his predecessor Joe Biden.
Biden’s administration handed over $ 370 billion loans, subsidies and other support to companies under his leading law on reducing inflation, although Trump has gone into removal of some brochures.
An additional reporting of Ian Johnston in Paris and Ivan Levingston in London
