Leclerc and Arnault Clash Over Tax Surcharge: Accusations of “Blackmail” and “Patriotism”

Paris, January 31, 2025 — Michel-Edouard Leclerc, president of the strategic committee for E.Leclerc centers, and Bernard Arnault, CEO of LVMH, are at the center of a heated controversy following their respective comments on the corporate tax surcharge included in the 2025 budget proposal. The tension between these two prominent figures in French business has taken an unexpected turn.

Leclerc Criticizes Arnault: “Blackmail”

On Friday, January 31, Michel-Edouard Leclerc didn’t hold back his criticism when reacting on LCI to comments made by Bernard Arnault, who had denounced a “tax on the Made in France” in the 2025 budget. According to Leclerc, Arnault’s statement threatening to leave France due to the surcharge on large businesses amounted to “blackmail.” “It’s not necessarily positively impactful to have one of the richest men in France say, ‘If this doesn’t work, I’ll leave the country,'” Leclerc commented. He also emphasized that no E.Leclerc store owner would ever make such a threat, stressing the local attachment of the group’s businesses.

Arnault Defends His Position: “I’m Patriotic”

In response, Bernard Arnault strongly reacted on the social media platform X, denying that he had ever mentioned relocating LVMH. “I’ve certainly never said that we would relocate the LVMH group,” he stated. According to him, his warnings are aimed at alerting people to fiscal measures he considers counterproductive to France’s competitiveness. “It’s precisely because I love France and want our country to remain competitive that I’ve felt the need to warn against measures that I see as entirely counterproductive,” Arnault added. He insisted that the surcharge penalizes companies producing in France while sparing those that have outsourced their operations.

A Sharp Reply from Bernard Arnault to Leclerc

Arnault didn’t hesitate to directly respond to Leclerc’s attacks, advising him to “show his patriotism” in a different way. “As for Mr. Leclerc, since he seems to want to defend French SMEs, I suggest he sell more French products in his supermarkets and stop squeezing French suppliers,” he said, referring to E.Leclerc’s commercial practices that allegedly demand ever-lower prices from its suppliers.

The CEO of LVMH concluded by inviting Leclerc to “show his patriotism in this way, rather than criticizing a group that makes France shine internationally.” This sharp response has fueled the fire, suggesting more tensions are to come between these two giants of the French economy.