Overview
- President Donald Trump told the New York Post on Monday that he warned Emmanuel Macron the U.S. will impose a 100% tariff on all French wine and champagne unless France repeals its 3% digital services tax.
- No new tariffs have been imposed yet, but a February 2025 presidential memorandum tasked the U.S. Trade Representative and the Treasury with considering a reopened probe that could lead to formal U.S. trade action.
- The United States buys about one-fifth of French wine and spirits exports, roughly $2 billion a year, so a 100% duty would sharply raise U.S. prices and threaten sales for producers and retailers.
- Paris has publicly rejected using tariffs and Macron said tariffs 'don't do anyone any good,' promising a 'respectful but firm' discussion with Trump at the G7 summit in Évian-les-Bains.
- The escalation revives options first floated by the USTR in 2019, risks reciprocal measures, and could complicate G7 diplomacy and ongoing OECD talks on how to tax large digital platforms.