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.
- French wine and spirits exporters called the tariff threat 'bad news' for their industry.
- France's digital services tax has been in place since 2019.
- French President Emmanuel Macron refused to drop the country's digital tax despite the tariff threat.
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 U.S. 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. 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. French wine and spirits exporters called the threat 'bad news' for their industry, which relies heavily on exports, and urged balanced and constructive trade ties between France and the United States. French President Emmanuel Macron has refused to drop the country's digital tax despite the threats, creating a potential standoff ahead of the G7 summit.