Overview
- President Trump told the New York Post on Monday that he directly warned President Emmanuel Macron to abolish France’s 3% digital services tax or face a 100% tariff on all French champagne and wines.
- The White House and the Élysée Palace had not issued official responses to the threat in the initial reports.
- The United States bought roughly 21% of French wine and spirit exports last year and EU alcohol sales to the U.S. were worth about €9 billion in 2024, so raising tariffs from the current roughly 15% to 100% would sharply increase prices for exporters and U.S. importers.
- The latest threat continues a pattern of public tariff warnings by the president, including a January threat of 200% duties, and comes as the two leaders were due to meet before the G7 summit.
- If implemented, higher U.S. duties could push French producers to cut shipments, raise retail prices for American consumers, and prompt EU trade or diplomatic countermeasures, so officials’ statements and the scheduled bilateral talks will be key to watch next.