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International companies fix their supply chains and enhance their presence in the United States to match the Donald Trump's national economic agenda and reduce the impact of its planned definition.
While the US President is preparing to impose fees on imports as soon as the end of this week, senior executives from Europe and abroad, including Bernard Arnol from LVMH, Will Shels and Will San, say they expect to invest more in the United States.
“We strongly encourage us to continue preparing (workshops),” Arnol said this week. “In the current environment, it is something we look seriously.”
LVMH, the second most listed companies in Europe, manufactures most of its products in France and Italy, but opened three workshops in Louis Vuitton in the United States and invested billions of American jewelry Tiffany.
Arnolt, who attended Trump's inauguration in Washington last week, said he felt “winds of optimism” in the United States and returning to France was a “cold shower”.
He and other executives have spoken positively about the low US taxes, cheaper energy costs and higher growth, especially compared to Europe.
SAWAN said that his power group, the second most listed company in the United Kingdom, plans to expand its American business. “I expect that we will only continue to grow (in the United States) because of the good momentum that we see around supportive tax structures and enabling regulations.” All of this will give us the pleasant back wind and more confidence to invest. “
In his opening speech this month, Trump pledged “drilling, child, pits” to exploit American oil resources.
While the president seeks to use definitions to push companies to move to the United States and follow other goals, starting with measures against Canada, Mexico and ChinaThe European Union has recognized the groups that are deterred by its red tape.
In FT article, Christine Lagarde and Orrsola von der Lin, European Central Bank heads and European Commission warned that the regulations that have warned of investment, adding, “We need to do business in Europe cheaper, especially with regard to energy costs.”
The threat of American definitions also raises the balance of investments, according to executives and bankers, in an effort that extends sectors.
CEO Daniel Erfer said that Henz & Moritz is looking to buy more of its suppliers near its main markets, including the United States.
“(We want) the flexibility in our supply chain to be able to reduce the potential definitions,” he told Financial Toys. “The world is less globalized.”
“It may take some time, but. We are definitely trying to localize production, which will reduce the potential impact of the definitions,” said Zeong Ko, CEO of the South Korean car maker Hyundai last week.
John Elcan, head of Stelantis, also flew to Washington before Trump's inauguration, Four days with the president And senior government officials. A few days later, the owner of Fiat and Jeep announced an investment of $ 5 billion in the United States; In December, after Trump's election, the group reflected a decision to cut 1,100 jobs at the Jeep factory in Ohio.
One European banker said: “Anyone representative in the United States or excessive represented in Europe. They want to make sure they are building the next factory there for here,” said one of the European bankers.
The rush by companies to expand in the United States to defend the definitions and benefit from the least well -known organization, and take a strong economy under Trump will follow an increase earlier in investment during the era of his predecessor Joe Biden.
The Biden administration handed over $ 370 billion in loans, support and other support to companies under the law to reduce pioneering inflation, although Trump has moved to the cancellation of some bulletins.
Participated in additional reports by Ian Johnston in Paris and Ivan Lingstone in London
