US president Trump warns France to scrap its digital tax or face 100% tariffs on wine and champagne exports.
US President Donald Trump has threatened to impose a 100% tariff on French wines and champagne unless France abandons its 3% digital services tax on major technology companies, escalating trade tensions ahead of this week’s G7 summit in France.
According to the New York Post, Trump issued the warning before travelling to Évian-les-Bains for the summit, directly linking the proposed tariffs to France’s tax policy targeting large technology firms.
“I asked [President Emmanuel Macron] not to charge American companies, and if they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France,” Trump told the newspaper.
The digital services tax, approved by French lawmakers in 2019, imposes a 3% levy on gross revenues generated in France by large technology companies. The measure affects several major US firms, including Amazon, Meta and Alphabet.
The latest threat comes as the French wine industry remains heavily dependent on the U.S. market. Exports to the United States account for roughly one-fifth of France’s global wine sales, generating about $2 billion annually.
Trump’s warning is not the first time his administration has targeted France’s wine sector in response to the digital tax.
In 2019, Washington raised the possibility of imposing substantial duties on a range of French products, including wine, arguing that the tax unfairly discriminated against American technology companies.
Earlier this year, Trump also suggested he could impose a 200% tariff on French wines and champagne as part of efforts to pressure French President Emmanuel Macron to support his Board of Peace initiative.
Meanwhile, French wine exports to the United States have already experienced a significant decline. According to the American Association of Wine Economists, citing data from France’s Directorate-General of Customs and Indirect Taxes, exports to the U.S. fell by 15.9% in value in 2025, dropping to €1.9 billion ($2.2 billion) from €2.4 billion in 2024.
In a LinkedIn post, the association noted that it remains unclear whether the decline was driven primarily by tariff concerns or by a broader shift among consumers toward lower-priced wines.
The renewed tariff threat is expected to feature prominently in discussions between Trump and Macron during the G7 summit, as both countries seek to navigate longstanding disputes over taxation, trade and market access.
