President Donald Trump has warned France that it could face 100 percent tariffs on wine and champagne imports unless they abandon their digital services tax targeting major American technology companies. Trump said he personally urged French President Emmanuel Macron to scrap the levy, arguing it unfairly singles out American firms, including Apple, Amazon, Google, and Meta.
"I asked him not to charge American companies, and if they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France," Trump told the New York Post in an interview on Monday. "All he has to do is get rid of the sales tax, and he wouldn't have that kind of pressure."
France's digital services tax, first implemented in 2019, imposes a three percent levy on revenues earned in France by large multinational technology companies. The measure has long been criticized by the US as disproportionately affecting US-based firms.
The latest dispute comes as the Trump administration has continued pursuing an aggressive trade agenda during the president's second term, including tariffs on steel imports and renewed pressure on foreign governments viewed as disadvantageous to American businesses.
Trump's warning revives a years-long standoff between the two countries over digital taxation. Similar tensions emerged during Trump's first administration and have resurfaced amid broader debates over international trade and the regulation of Big Tech.
The United States remains one of the most important export markets for French wine producers, accounting for roughly one-fifth of the industry's global sales and more than $2 billion annually. A 100 percent tariff could have significant consequences for French exporters.
Macron signaled that France would not back down, insisting the tax complies with European rules and warning that tariffs would ultimately hurt both economies.
The clash came ahead of meetings between world leaders at the G7 summit and marks another point of friction between the United States and Europe as Trump continues to push policies aimed at protecting American industries and challenging foreign governments seen to be taking advantage of US companies.
