World

Trump threatens 100% tariff on French wines over digital tax

WASHINGTON – US President Donald Trump threatened to slap a 100 per cent tariff on French wine and champagne unless Paris removes its digital services tax on tech firms, according to the New York Post.

France imposed in 2019 a 3 per cent levy on the revenues earned by technology firms, including American giants such as Facebook, Amazon, Apple and Google parent Alphabet, within the country’s borders.

French President Emmanuel Macron is due to host Trump on June 15 before the G-7 summit gets under way at the spa resort of Evian on Lake Geneva.

Trump said he asked Macron “not to charge American companies”, the New York Post reported on June 15.

“If they do, I have no choice but to charge a 100 per cent tariff on all champagnes and all wines coming out of France,” he was quoted as saying. “All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

The United States is the biggest importing country for French wines and spirits, accounting for 21 per cent of the overall export market in 2025, French Federation of Wine and Spirits Exporters.

French and European wines exported to the US already face a 15 per cent tariff – up from an earlier 10 per cent.

The export of French wines and spirits to the US slumped by 21 per cent in 2025, according to the French exporters federation.

In January, Trump threatened 200 per cent tariffs on French wine over France’s intention to decline an invitation to join his “Board of Peace” aimed at resolving international conflicts.

Canada decided to scrap its digital services tax in 2025 in order to salvage trade talks with the US, following pressure from Trump.

Proponents for special taxes on big tech firms argue that the goal is to force them to pay taxes where they carry out business, as well as to counter tax optimisation strategies.

During his first term, Trump also threatened to slap tariffs on US imports of champagne and French cheese after France rolled out its digital services tax in 2019. AFP