Key facts
- President Trump threatened 100% tariffs on French wines and champagne.
- The tariffs are a response to France's 3% digital services tax on American tech companies.
- France's digital tax targets large tech companies with global revenues over €750 million and French revenues over €25 million.
- The US previously investigated the French digital tax and is considering reopening the probe.
- Alcohol exports from the EU to the U.S. were valued at approximately €9 billion in 2024.
President Donald Trump has threatened to impose 100% tariffs on all French wines and champagne unless France scraps its 3% digital services tax on American technology companies. Trump stated that he relayed the warning directly to French President Emmanuel Macron, indicating that if France proceeds with the levy, the US will have no choice but to impose punishing duties in the American market. France's digital services tax, in place since 2019, levies a 3% charge on the gross revenues of large technology companies operating within the country. The US had previously investigated the French tax and is considering reopening the probe. Wines and spirits exported to the U.S. from the EU currently face a 15% tariff. Alcohol is among the EU's top exports to the U.S., worth about €9 billion in 2024. Trump is due to arrive in France for a gathering of the Group of Seven wealthy nations.