U.S. President Donald Trump has issued a sharp warning to France, threatening to impose 100% tariffs on French wines and champagne if Paris does not repeal its 3% digital services tax on major technology companies.
The threat comes just ahead of this year’s G7 summit in Évian-les-Bains, France.
“I asked President Emmanuel Macron not to tax American companies. If they continue, I will have no choice but to impose a 100% tariff on all champagne and wine coming from France,” Trump told the New York Post.
France’s digital services tax, introduced in 2019, imposes a 3% levy on gross revenues generated in France by large tech companies, including U.S. giants such as Amazon, Meta, and Alphabet.
According to available data, exports to the United States account for roughly one-fifth of total global sales in the French wine industry, worth around $2 billion annually.
This is not the first time the Trump administration has targeted France’s wine sector in trade disputes. In 2019, Washington also threatened high tariffs in response to the digital tax, calling it discriminatory against American companies.
In January this year, Trump additionally floated the possibility of 200% tariffs on French wines and champagne as part of efforts to increase pressure on President Emmanuel Macron.
The latest warning further escalates tensions between Washington and Paris and raises the prospect of a renewed trade conflict between the two allies.
