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 new trade confrontation with Washington if it does not remove a digital services tax on big US 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 against digital tax

In an interview with The Post, Trump said he personally urged outgoing French President Emmanuel Macron to repeal the tax on American tech giants.

“I asked him not to charge American companies, and if he does, I have no choice but to charge a 100 percent tariff on all champagne and all wine that comes from 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 pressure.”

The remarks signal a potential escalation of long-standing tensions between Washington and Paris over taxation of large digital platforms.

A threat looms over the 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 meet to discuss trade, security and economic policy.

The Group of Seven includes the United States, France, Germany, Italy, Japan, Canada and the United Kingdom.

Settlement claim dispute

Trump’s remarks also cast doubt on the Elysee Palace’s claim that the digital tax dispute has been largely resolved.

According to the news outlet, a senior source close to Macron said last week that the issue was “no longer under discussion” among the G7 countries.

However, a US official reportedly rejected the characterization, telling the publication that the claim was not “accurate”.

What is the French digital tax?

France introduced a digital services tax in 2019.

Commonly known as the GAFAM tax, it imposes a 3% tax on revenue generated in France by large digital companies, including:

Unlike traditional corporate taxes, the levy is based on revenue rather than profit, so it is particularly significant for large multinational technology firms.

The tax generated roughly $700 million for France last year, according to figures cited by the French finance ministry.

French lawmakers pushed for a higher tax

Pressure on US tech companies intensified in October when France’s National Assembly voted to raise the tax rate from 3% to 6%.

Lawmakers reportedly considered raising the tax by as much as 15% before scaling back the proposal after industry concerns.

The proposed increase was ultimately vetoed by government ministers.

Former Economy Minister Roland Lescure warned at the time that the “disproportionate” tax could provoke “disproportionate” retaliation from the United States, The Post reported.

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The White House supports a tough stance

White House spokesman Kush Desai pointed to a presidential memo issued in February 2025.

According to the memo cited in the publication, American businesses would no longer “prop up failing foreign economies through extortionate fines and taxes.”

The Trump administration has repeatedly argued that digital taxes imposed by foreign governments unfairly target American companies.

Allies rethink digital taxes

France’s position appears increasingly isolated as several US allies reconsider similar measures.

-Canada abandoned its planned digital tax in 2025 after the US suspended trade talks.

-Italy is reportedly considering canceling its own conscription.

-The UK retained the digital services tax under current trade deals with Washington.

The United States is one of the biggest export markets for French wine and champagne producers, accounting for about a fifth of the industry’s global sales of more than $2 billion a year, according to The Post.

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