Trump Threatens 100% Tariff on French Wine Ahead of G7/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump threatened a 100% tariff on French wine and champagne if France keeps its digital services tax on U.S. tech companies. The warning comes just before Trump’s trip to France for the G7 summit hosted by President Emmanuel Macron. The renewed trade dispute risks escalating tensions between Washington and Europe.
Trump France Tariff Threat Quick Looks
- Trump warned France to scrap its digital services tax or face steep tariffs.
- The proposed tariff would target French wines and champagne exports.
- France’s digital tax primarily affects major U.S. technology firms.
- The threat revives a trade dispute dating back to Trump’s first term.
- French alcohol exports to the U.S. exceed $10 billion annually.
- The tariff warning comes ahead of the G7 summit in France.
- Trade tensions could complicate Trump’s meeting with Emmanuel Macron.
Deep Look
Trump Revives Trade Fight With France Ahead of G7 Summit
President Donald Trump renewed his long-running dispute with France over its digital services tax, threatening to impose a 100% tariff on French wine and champagne just hours before departing for the Group of Seven summit in France.
The warning raises the possibility of a new transatlantic trade battle at a time when global leaders are gathering to discuss economic growth, security, and international cooperation.
Trump said France must eliminate its tax on American technology companies or face severe consequences for one of its most valuable exports.
“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.
He added: “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
France’s Digital Tax Targets Big U.S. Tech Firms
France introduced its digital services tax in 2019, applying a 3% levy on revenue generated in the country by large technology companies.
Often referred to as the “GAFAM tax,” the measure primarily affects major American firms including Google, Apple, Facebook, Amazon, and Microsoft.
U.S. officials have long argued that the measure unfairly targets American businesses and discriminates against U.S. technology leaders.
French lawmakers considered increasing the tax to 6% in 2025, although ministers later blocked the proposal following industry concerns.
French Wine Industry Faces Major Exposure
The tariff threat carries significant implications for France’s wine and spirits industry.
French alcohol exports to the United States were worth approximately €9 billion ($10.5 billion) in 2024, making America one of France’s largest export markets.
According to reports, the U.S. accounts for nearly one-fifth of global sales for the French wine industry, representing more than $2 billion annually.
Products such as champagne and cognac are especially vulnerable because they must be produced in specific regions of France, limiting producers’ ability to relocate operations or diversify supply chains.
A jump to 100% would dramatically increase costs for importers, distributors, and consumers.
Trade Tensions Could Overshadow G7 Summit
The two leaders have maintained a complicated relationship dating back to Trump’s first administration, often cooperating on security issues while clashing over trade and taxation.
The dispute may complicate summit discussions, particularly as U.S. allies remain cautious about Washington’s increasingly aggressive trade policies.
The White House did not immediately comment on Trump’s remarks.
Trump’s comments also appeared to contradict previous statements from Macron’s office suggesting that digital tax disputes were no longer active among G7 members.
Other Nations Reassess Digital Taxes
France is not alone in imposing digital services taxes, but pressure from Washington has prompted some countries to reconsider.
Canada shelved its own digital tax in 2025 after trade talks with the United States stalled.
The debate highlights a broader struggle over how governments should tax global technology companies that generate significant revenue across borders.
As world leaders gather in France, Trump’s tariff warning signals that trade disputes remain a central feature of his economic strategy — even as diplomacy over security, energy, and global conflicts dominates the international agenda.
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