President Donald Trump has warned that the United States will impose 100 per cent tariffs on French wine and champagne unless President Emmanuel Macron scraps France’s three per cent digital services tax on American technology companies.
In an interview with the New York Post published on Monday, Trump said he had delivered the ultimatum directly to Macron.
“I asked him not to charge American companies, and if they do, I have no choice but to charge a 100 per cent tariff on all champagnes and all wines coming out of France,” he stated.
The threat comes just days before the G7 summit in Évian-les-Bains, France, and revives a long-running transatlantic dispute.
France introduced the digital services tax (often called the “GAFAM tax”) in 2019, applying a three per cent levy on revenues generated in France by large digital companies — primarily US giants such as Google, Amazon, Meta and Apple — with global revenues above €750 million and French revenues above €25 million.
The US is France’s largest export market for wine, accounting for roughly one-fifth of total French wine and spirits exports, worth more than $2 billion (€1.72 billion) annually.
European wines currently face a tariff of 15 per cent in the US. French wines and spirits saw their sales slip 21 per cent last year, according to the French exporters federation.
A 100 per cent tariff would effectively double the price of French wines in the American market, dealing a severe blow to producers in Bordeaux, Burgundy and the Champagne region.
Trump has long argued that such digital taxes unfairly single out American firms.
France collected approximately $700 million from the levy last year.
French officials have pushed back.
Macron is expected to host Trump on the side lines of the G7 and has called for “firm but respectful” discussions.
A source close to the French presidency indicated the tax is not up for negotiation, describing it as a matter of fiscal sovereignty.
France maintains the tax is non-discriminatory and applies to all qualifying companies regardless of nationality.
The episode echoes tensions from Trump’s first term, when he similarly threatened wine tariffs over the same issue.
Those earlier threats were eventually paused during broader trade negotiations.
Canada and Italy have also faced similar scrutiny, with Canada scrapping its digital services tax in 2025.
European leaders have repeatedly argued that unilateral digital taxes are a temporary measure pending a global agreement on taxing multinationals, though progress at OECD level has been slow.
French wine producers expressed alarm at the renewed threat. Industry representatives warned that such tariffs would be “devastating” for small and medium-sized estates heavily reliant on the US market.
