President Donald Trump warned that the United States will impose a 100% tariff on French wines if France does not abandon its digital services tax on American technology companies before the upcoming Group of Seven summit.
The president emphasized that the U.S. has “no choice” but to enact the tariffs if French President Emmanuel Macron refuses to revoke the 3% levy targeting large digital firms. “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 New York Post.
The digital services tax, known in France as the GAFAM tax after major U.S. tech giants Google, Apple, Facebook, Amazon, and Microsoft, has been active since 2019. It imposes a 3% levy on revenue earned in France by large digital companies meeting specific thresholds. U.S. officials have long opposed the measure, arguing it disproportionately impacts American technology firms.
Trump’s comments appear to counter recent claims from Macron’s office that the dispute had been resolved among G7 nations. A U.S. official dismissed that characterization as inaccurate.
The tariff threat adds to growing transatlantic trade tensions as Trump prepares to attend the G7 summit in Évian-les-Bains, France. U.S. allies remain cautious about Washington’s expanding use of trade restrictions.
The renewed threat echoes tariffs first considered during a 2019 U.S. Trade Representative investigation into France’s digital tax. Trump previously threatened steep duties on European alcohol products, with earlier warnings of up to 200% tariffs as tensions escalated.
Alcohol represents one of Europe’s largest export categories to the United States, valued at approximately €9 billion ($10.5 billion) in 2024. France is particularly vulnerable due to strict geographical indications that confine champagne and cognac production to specific regions, limiting producers’ ability to relocate operations.
Current U.S. tariffs on French alcohol stand at 15%. Paris has sought to eliminate these duties since the recent U.S.-EU trade agreement concluded in Scotland. The New York Post reports that the U.S. market accounts for roughly one-fifth of French wine industry global sales, exceeding $2 billion annually.
France’s National Assembly recently voted to double the digital tax to 6% and tighten eligibility thresholds, though ministers later vetoed the expansion. The adjustment followed initial proposals for much higher rates that were scaled back amid industry pressure.
Trump’s tariff threats come as other U.S. trading partners adjust their digital tax policies under American pressure. Canada eliminated its digital tax in 2025 after trade talks collapsed, while Italy is reportedly considering repeal. Britain continues its digital services tax under existing U.S. trade arrangements.
The G7 summit, running through Wednesday in Évian-les-Bains, includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.