Trump threatens 100% tariff on French wines unless Paris drops digital tax on US tech giants

The threat

President Donald Trump warned on Monday that the United States would slap a 100% tariff on French wine and champagne unless France removes its digital services tax on large American technology companies. Speaking to the New York Post, Trump said he had delivered the ultimatum directly to President Emmanuel Macron ahead of today's G7 summit in Evian-les-Bains.

“I asked him not to charge American companies. If they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France.”

Trump described the condition as simple: if the 3% tax were eliminated, "he wouldn't have that kind of pressure."

Background on the dispute

France introduced the 3% levy in 2019, applying it to digital revenues generated within its borders by firms with more than 25 million euros in French turnover and 750 million euros globally. It targets big US players such as Google, Amazon, Meta Platforms and Apple. During his first term, Trump also threatened tariffs on French imports when the tax was rolled out, and in 2025 and early 2026 he floated 200% duties.

The White House and the Élysée Palace did not immediately respond to requests for comment.

Wine industry caught in the middle

The French Federation of Wine and Spirits Exporters (FEVS) called the threat bad news for its export-dependent sector. French and European wines already face a 15% US tariff, up from 10% earlier. Exports of French wines and spirits to the US, the largest single market accounting for 21% of the total, slumped by 21% last year.

“This threat is bad news for our industry, highly dependent on exports.”

Alcohol is among the EU's main exports to the US, worth about 9 billion euros in 2024, with certain products like Remy Martin cognac and champagne tied to specific European regions.

G7 backdrop

Trump arrives in Evian-les-Bains today at the start of a three-day summit of the Group of Seven. Macron, whose second and final term ends next year, sees the event as the diplomatic high point of his presidency. Canada scrapped its own digital services tax last year to salvage trade talks with the US after similar pressure from Trump.