President Donald Trump warned France must eliminate its 3% digital services tax on U.S. tech companies or face punitive tariffs on wine exports ahead of G7 summit.
10:05 AM
President Donald Trump has threatened to impose a 100% tariff on French wine and champagne exports to the United States if France does not scrap its digital services tax on American technology companies.
Trump made the warning in an exclusive interview with the New York Post on Monday, ahead of this week's G7 summit in Évian-les-Bains, France. "I asked [President Emmanuel Macron] 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 Post.
The digital services tax, approved by French lawmakers in 2019, imposes a 3% levy on gross revenues generated in France by large technology companies. The tax applies to U.S. giants including Amazon, Meta and Alphabet.
French wine and champagne exports to the United States account for approximately one-fifth of France's total wine exports. The threatened tariff would represent a significant escalation in trade tensions between the two countries.
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