Trump Threatens Tariffs on French Wine Amid Tech Tax Dispute
President Donald Trump has threatened to impose 100% tariffs on French wines and champagne if France does not eliminate its digital services tax on American tech companies. The ultimatum, delivered to outgoing French President Emmanuel Macron, reportedly requires France to scrap the tech tax or face restricted access to the U.S. market, which accounts for approximately a fifth of the French wine industry's global sales. This development comes ahead of the G7 summit and contradicts earlier assertions from Macron's office that the dispute had been resolved.
President Donald Trump has threatened to impose 100 percent tariffs on French wines and champagne unless France eliminates its digital services tax on American tech companies.
Trump reportedly delivered this ultimatum personally to outgoing French President Emmanuel Macron. The choice presented was to either scrap the tech tax or lose access to the U.S. market, which reportedly represents about a fifth of the French wine industry's global sales.
France's digital services tax, known as the GAFAM tax, has been in effect since 2019. It applies a 3 percent levy on local revenues generated by major tech companies, including Google, Amazon, Meta, and Apple. The French finance ministry reported that this tax generated approximately $700 million last year.
The threat was made public ahead of Monday's G7 summit in Évian-les-Bains, France. It directly contradicts claims made by Macron's office last week that the dispute had been quietly resolved. A U.S. official reportedly dismissed this characterization as inaccurate.
France appears increasingly isolated on this issue. Canada reportedly dropped its own digital tax in 2025 following U.S. pressure, and Italy is reportedly considering a similar retreat regarding its digital services tax.
According to Mashable Tech, this information was published in an exclusive interview by the New York Post.
