**Trump Threatens 100% Tariffs on French Wine Over Digital Tax Dispute**
In a significant escalation of trade tensions, President Donald Trump has warned that the United States may impose a 100% tariff on French wine unless France abolishes its digital tax targeting American technology companies. This warning was conveyed directly to French President Emmanuel Macron, as Trump seeks to address what he perceives as unfair taxation on U.S. firms operating in France.
During an interview with the New York Post, Trump stated, “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.” He emphasized that the solution lies in France removing the 3% digital tax, which has been in place since 2019 and applies to companies with significant revenue both in France and globally.
The digital tax was introduced to target large tech companies, particularly those with revenues exceeding €25 million in France and €750 million worldwide. This move has drawn criticism from the United States, which argues that it disproportionately affects American firms like Google, Amazon, and Facebook.
Trump's ultimatum comes as he prepares to attend the Group of Seven (G7) summit in Evian-les-Bains, France, where he will meet with other world leaders. The summit is particularly significant for Macron, as it marks a diplomatic highlight of his presidency, which is set to conclude next year.
Trade relations between the U.S. and the European Union have been strained in recent years, with Trump previously threatening tariffs on French wine and other alcoholic beverages. He has indicated that the U.S. could impose tariffs as high as 200% on these imports if the digital tax issue is not resolved. Currently, wines and spirits imported from the EU face a 15% tariff, a rate that French officials have been lobbying to reduce to zero since a trade deal was agreed upon between Trump and European Commission President Ursula von der Leyen last summer.
The potential impact of such tariffs is significant, as alcohol represents one of the EU's top exports to the U.S., valued at approximately €9 billion in 2024, according to Eurostat data. Notably, products like Remy Martin cognac and champagne are produced in specific regions of Europe, adding to their cultural and economic importance.
As the G7 summit approaches, the outcome of this trade dispute remains uncertain. The White House and Elysee Palace have not yet provided comments on Trump's latest statements, leaving the door open for further negotiations or potential escalations in trade policy.