Overview
- President Donald Trump told the New York Post on Monday that he told President Emmanuel Macron to drop France’s 3% digital services tax or the U.S. will place a 100% tariff on all French wine and champagne.
- France’s DST was adopted in 2019 and levies 3% on gross revenue of large digital firms, raising roughly €700–756 million a year according to French officials.
- Trump’s 100% figure revives tariff levels first proposed by the U.S. Trade Representative in a 2019 investigation of the French tax and gives U.S. agencies a precedent to reopen formal trade action.
- Paris pushed back, saying tariffs harm everyone and disputing U.S. accounts that the issue had already been settled at the G7, leaving public French and American statements at odds.
- The U.S. is the single biggest market for French wine, buying about one-fifth of exports, so renewed tariffs would hit producers and could influence other countries’ choices on similar digital levies.