Trump threatens 100% tariffs on French wine over digital tax on US tech firms: ‘I have no choice’
US President Donald Trump has warned France that it could face a fresh trade confrontation with Washington unless it removes its digital services tax on
US President Donald Trump has warned France that it could face a fresh trade confrontation with Washington unless it removes its digital services tax on major American technology companies, The warning raises the prospect of steep tariffs on French wine and champagne exports to the United States and could become a key issue at the ongoing G7 summit in France. Trump warns Macron over digital tax Trump, speaking to The Post, said he had personally urged outgoing French President Emmanuel Macron to scrap the tax imposed on US technology giants. "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. He added: "All [Macron] has to do is get rid of the sales tax, and he wouldn't have that kind of pressure." The remarks signal a potential escalation in long-running tensions between Washington and Paris over the taxation of large digital platforms.
Threat looms over G7 summit Trump's comments come ahead of discussions at the G7 summit in Évian-les-Bains, where leaders of the world's major advanced economies are meeting to discuss trade, security and economic policy. The Group of Seven includes the United States, France, Germany, Italy, Japan, Canada and the United Kingdom. Dispute over claims of a settlement Trump's remarks also challenge claims from the Élysée Palace that the digital tax dispute had largely been resolved. According to the news outlet, a senior source close to Macron said last week that the issue was "no longer up for debate" among G7 countries. However, a US official reportedly rejected that characterization, telling the publication the claim was "not accurate." What is France's digital tax? France introduced its digital services tax in 2019. Commonly known as the GAFAM tax, it imposes a 3% levy on revenue generated in France by large digital companies, including Alphabet Amazon Meta Apple Unlike traditional corporate taxes, the levy is based on revenue rather than profits, making it particularly significant for large multinational technology firms.
According to figures cited by the French finance ministry, the tax generated roughly $700 million for France last year. French lawmakers sought a higher tax The pressure on US tech companies intensified in October when France's Assembly voted to increase the tax rate from 3% to 6%. Lawmakers reportedly considered raising the levy as high as 15% before scaling back the proposal following industry concerns. The proposed increase was ultimately vetoed by government ministers. At the time, former Economy Minister Roland Lescure warned that a "disproportionate" tax could trigger "disproportionate" retaliation from the United States, The Post reported. Also Read | Does Donald Trump make Latin America a good bet? White House backs tough stance White House spokesman Kush Desai pointed to a presidential memorandum issued in February 2025. According to the memo cited by the publication, American businesses would no longer "prop up failed foreign economies through extortive fines and taxes." The Trump administration has repeatedly argued that digital taxes imposed by foreign governments unfairly target American companies.
The BriefWire