Trump Threatens 100% Tariffs on French Wine Over Digital Tax Dispute

President Donald Trump has threatened to impose a 100% tariff on French wine and champagne imports if Paris does not withdraw its 3% digital services tax applied to large technology companies.

Speaking ahead of the G7 summit in Évian, France, this week, Trump stated that he requested French President Emmanuel Macron to refrain from taxing American companies. He added that if the tax remains in place, "the United States will have no choice but to impose a 100% tariff on all types of champagne and wine coming from France."

The French digital tax, introduced in 2019, levies a 3% charge on revenues generated within France by major tech companies, including American firms such as Amazon, Meta, and Alphabet.

The United States represents a crucial market for French wine exports, accounting for approximately 20% of the sector's global sales, which equates to about two billion dollars annually.

This is not the first time Trump has threatened trade measures against France over the digital tax. He previously warned of retaliatory tariffs on French products following the tax's enactment, considering it an unfair targeting of American companies.

French data indicate that wine exports to the United States declined by 15.9% in 2025, reaching 1.9 billion euros compared to 2.4 billion euros in 2024. This decrease has sparked debate over whether it results from trade tariffs or a shift among consumers toward lower-priced products.

The recent escalation occurs amid growing trade tensions between Washington and its economic partners regarding taxes imposed on major American technology firms, placing digital trade issues prominently on the G7 summit agenda.