President Donald Trump has threatened that France must eliminate its 3% tech 'sales tax' or face a 100% tariff on U.S. imports of French wines and champagne. This warning comes ahead of the G7 summit in Évian-les-Bains, where Trump expressed his concerns directly to French President Emmanuel Macron.
The digital services tax, enacted by French lawmakers in 2019, applies to large technology firms, including major U.S. companies like Amazon, Meta, and Alphabet, and has been a point of contention between the two nations.
The French wine industry, which exports approximately $2 billion worth of products to the U.S. annually, could be severely affected, as these exports account for about one-fifth of its total global sales.
This is not the first instance of the Trump administration targeting France's wine sector; similar threats were made in 2019 in response to the tax, which the U.S. deemed discriminatory against American businesses. Trump's previous comments included a proposal for a 200% tariff on French wines to pressure Macron into supporting his Board of Peace initiative.
The potential tariffs could escalate trade tensions and impact market dynamics for both the French wine industry and U.S. consumers