Washington, United States. President Donald Trump said the United States would “have no choice” but to impose 100% tariffs on French wine unless France eliminates its digital tax on American technology companies. He said he delivered the warning directly to French President Emmanuel Macron.
Tariff warning to France
Trump said he told Macron to remove France’s 3% tax on U.S. technology companies or face duties in the American market.
In an interview with the New York Post, Trump said, “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 added, “All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
The White House and Elysee officials did not immediately respond to a request for comment.
Previous threats and upcoming summit
Trump has previously threatened a 200% tariff on wine and other alcoholic beverages imported from France and the EU, including in January this year and in March last year as transatlantic trade tensions increased.
Trump is due to arrive in Evian-les-Bains, France, for a gathering of the Group of Seven wealthy nations. He will be greeted by Macron, for whom the summit is set to mark a diplomatic capstone in his second and final term in office, which ends next year.
Trade background
Alcohol is among the EU’s top exports to the United States, worth about €9 billion in 2024, according to Eurostat data. Some products, including Remy Martin cognac and champagne, are required to be produced in specific European regions.
Wines and spirits exported from the EU to the United States currently face a 15% tariff. France has been lobbying to reduce that rate to zero since Trump and European Commission President Ursula von der Leyen agreed a U.S.-EU trade deal in Scotland last summer.
France’s digital tax
France has applied a 3% levy since 2019 on revenue from digital services earned in France by companies with revenue of more than €25 million in the country and €750 million worldwide.