A new trans-Atlantic trade showdown is brewing as President Donald Trump threatens to impose 100% tariffs on French wine unless France abandons its digital tax on U.S. technology companies.
Trump told the New York Post he warned French President Emmanuel Macron that the 3% tech levy could come at a steep cost, putting billions of dollars in French wine exports to the American market at risk. The U.S. market, which generates more than $2 billion annually for French winemakers, accounts for roughly one-fifth of the industry’s worldwide sales.
Trump issued the 100% tariff threat before departing for the G7 summit in Évian-les-Bains, France, where leaders of the world’s largest democracies are gathering to discuss global trade, security, and economic policy.
While the tariff threat could spark friction with France, Trump’s meetings with Middle Eastern leaders and his efforts to resolve conflicts involving Iran and Ukraine are expected to dominate discussions.
Macron, for his part, responded to Trump ahead of his arrival in France, saying: “It’s not the U.S. that decides European or French law — that’s normal and it won’t be any different, at least as long as I am around.”
France’s digital service tax, widely referred to as the GAFAM tax, has been in place since 2019, and levies 3% on revenue earned in the country by big tech firms, including Google, Apple, Facebook also known as Meta, Amazon, and Microsoft.
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Tensions over the tax escalated in October when France’s National Assembly voted 296-58 to double the rate to 6% and limit its scope to the largest global forms, a move that was later blocked by government ministers.
Dining and Cooking