President Trump threatens 100% tariffs on French wine over digital tax

United States President Donald Trump has warned that his administration will impose 100% tariffs on French wine and champagne if France continues to enforce a 3% digital services tax on American technology companies. Trump communicated this ultimatum directly to French President Emmanuel Macron ahead of the G7 summit in Evian-les-Bains. The tax in question, enacted in 2019, applies to companies with annual revenues exceeding €25 million in France and €750 million globally. This potential trade action follows previous threats to tax European alcoholic beverages, which are a major EU export to the U.S. valued at approximately €9 billion in 2024. Current tariffs on EU spirits and wines entering the U.S. stand at 15%. Neither the White House nor the Elysee Palace has officially commented on the latest statements. The dispute highlights escalating trade tensions between the U.S. and the EU, complicating the diplomatic proceedings of the upcoming G7 meeting.