Overview
- President Donald Trump told The New York Post he would impose a 100% tariff on all French wine and champagne unless France eliminates its 3% digital services tax on large tech firms.
- French President Emmanuel Macron publicly refused to remove the levy, defended it as part of French and European law, and said he will seek a respectful but firm resolution with Trump at the G7 in Evian.
- France’s digital services tax charges 3% on revenues from search engines, social networks and online marketplaces that derive value in France and has been mirrored by several other European countries.
- The economic stakes are substantial because the United States is a major market for French wine and champagne, trade data cited about €2.4 billion in U.S. imports and industry groups warn that further tariffs would deepen recent export declines.
- No new U.S. tariffs have been imposed yet and the dispute is positioned for high-level diplomacy at the G7, with the main immediate risk being a negotiated escalation that could raise prices for U.S. buyers and sharply cut sales for French producers.