Trump threatens 100% tariff on French wines over digital services tax
In 2019, France imposed a 3% tax on revenue generated by tech companies—including U.S. giants such as Facebook, Amazon, Apple and Alphabet, Google’s parent company—within the country’s borders.
President Donald Trump.
President Donald Trump threatened to impose a 100% tariff on French wine and champagne unless Paris eliminates the digital services tax levied on tech companies. He made the remarks in a conversation published by The New York Post.
In 2019, AFP noted, France imposed a 3% tax on revenue generated by tech companies—including U.S. giants such as Facebook, Amazon, Apple and Alphabet, Google’s parent company—within the country’s borders.
French President Emmanuel Macron will meet with Trump on Monday before the G7 summit begins in the resort town of Evian, on the shores of Lake Geneva.
"We will have a respectful but firm discussion," Macron told French television on Monday ahead of the meeting.
"Tariffs don't do anyone any good, especially tariffs between G7 countries," Macron said, calling for trade "stability."
In the interview with The New York Post, Trump said he had asked Macron "not to charge American companies."
"If they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France," he was quoted as saying.
"All he has to do is get rid of the sales tax, and he wouldn't have that kind of pressure," he said of Macron.
Repeated threats
This made it, by far, the largest single market for French producers, ahead of the United Kingdom (11%) and Germany (6%).
Champagne and cognac accounted for 40% of the value of exports, at around 600 million euros each.
Red wines from Bordeaux came in second, with 220 million euros, followed by white wines from Burgundy, with 170 million euros.
But some French regions are particularly dependent on the U.S. market.
White wine producers in the Loire Valley send 45% of their exports to the United States, and Beaujolais 30%, while only 16% of champagne exports go to the U.S. market.
In January, Trump threatened to impose 200% tariffs on French wine due to France’s intention to decline an invitation to join his “Peace Council,” which aims to resolve international conflicts.
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