Trump Threatens 100% Tariff on French Wine Unless Digital Tax Is Dropped

U.S. President Donald Trump is threatening to impose a 100% tariff on wine and champagne imported from France unless President Emmanuel Macron scraps France’s digital services tax on American tech giants. According to the report, Trump said the United States would have “no choice” but to act if France does not withdraw the 3% levy on revenues from digital services provided by large companies. The French tax has been in place since 2019 and applies to firms with substantial activity in France and globally.

Macron rejected the threat and said France would not bow to American pressure. In an interview with TF1, he said trade wars help no one, especially not between G7 countries. Asked whether he would cave to Trump, Macron answered, “No, because the system simply does not work that way.”

The latest threat comes ahead of a planned meeting between the two leaders at the G7 summit and follows earlier Trump warnings that he could hit alcohol from France and the wider European Union with heavy tariffs. French wine and spirits exporters say they could be badly hurt and are urging responsible behavior and balanced trade relations between the two countries.

The concern in France is tied to the scale of exports to the United States. According to Eurostat, alcohol is one of the European Union’s main exports to the U.S., worth about 9 billion euros in 2024. A 15% tariff is already imposed on EU wine and alcohol exported to the United States, and France had hoped to see it reduced. Trump’s new threat could broaden the trade confrontation between Washington and Paris significantly.