Trump threatens 100% tariffs on French wine over digital tax dispute

US President Donald Trump has warned that France could face a renewed trade conflict with the United States unless it removes its digital tax on American technology companies, according to an exclusive interview with The New York Post.

Trump said that unless Paris abolishes its 3% digital services tax on major U.S. tech firms, the United States would “have no choice” but to impose 100% tariffs on French wines, including champagne. He stated that he conveyed the warning directly to outgoing French President Emmanuel Macron.

“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 Post. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

The U.S. market accounts for roughly one-fifth of French wine exports, worth more than $2 billion annually, making the threat potentially significant for the industry.

The dispute is expected to feature prominently at the G7 summit in Évian-les-Bains, where leaders of the world’s largest advanced economies will meet to discuss trade, security, and global economic policy.

Trump’s comments also contradict claims from Macron’s office that the digital tax dispute had been effectively resolved. A senior French source recently said the issue was “no longer up for debate” among G7 partners, a claim a U.S. official dismissed as “not accurate.”

France’s digital services tax, known as the GAFAM tax, has been in place since 2019 and imposes a 3% levy on the domestic revenue of major U.S. tech companies including Alphabet, Amazon, Meta, and Apple. Because it is based on revenue rather than profit, it disproportionately affects American firms, generating about $700 million last year, according to France’s finance ministry.

French lawmakers previously voted 296–58 to double the tax to 6%, though the move was later vetoed by ministers. A proposed 15% increase had also been considered but was scaled back due to industry pressure.

The Trump administration previously signaled a possible 100% tariff response during a 2019 U.S. trade investigation into the tax. A White House memo from February 2025 reiterated that U.S. firms would not “prop up failed foreign economies through extortive fines and taxes,” and directed officials to review potential action.

France has become increasingly isolated on the issue, as Canada dropped its digital tax in 2025 after U.S. trade pressure, while Italy is considering repeal. The United Kingdom has retained its levy under current arrangements.

The G7 summit runs through Wednesday in Évian, bringing together Canada, France, Germany, Italy, Japan, the UK, and the United States.

By Tamilla Hasanova