Donald Trump has issued a stark warning to France, threatening to impose 100% tariffs on French wine unless Paris eliminates its digital services tax on American technology companies.
Trump reportedly conveyed this ultimatum directly to French President Emmanuel Macron, demanding the removal of the 3% levy or face significant duties in the American market.
“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.
“All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
Neither the White House nor Elysee officials immediately responded to requests for comment regarding the escalating trade dispute.
The potential tariffs could significantly impact European exports, with alcohol products accounting for a substantial share of the EU’s trade with the U.S., valued at approximately €9 billion ($10.46 billion) in 2024, according to Eurostat data.
This includes protected goods such as Remy Martin cognac and champagne, which must be produced in specific European regions.
France implemented its 3% digital services tax in 2019, targeting revenue generated from digital services within France by companies with French revenue exceeding €25 million and global revenue exceeding €750 million.
Trump is due to arrive in France’s Evian-les-Bains for a Group of Seven summit, at a time when global leaders are increasingly wary of the United States.
He will be greeted by Macron, for whom this summit serves as a diplomatic capstone for his second and final term in office, which draws to a close next year.
