President Donald Trump has warned France that it must eliminate a 3% tech “sales tax” or else face a 100% tariff on U.S. imports of its wines and champagne.
President Trump allegedly issued the threat before this week’s G7 summit in Évian-les-Bains, France.
“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,” he stated.
The digital services tax approved by French lawmakers in 2019 imposes a 3% levy on the gross revenues of large technology companies operating in France, including U.S. giants like Amazon, Meta, and Alphabet.
Exports to the U.S. account for roughly one-fifth of the French wine industry’s total global sales, at around $2 billion each year.
This is not the first time the Trump administration has taken retaliatory measures against France’s wine industry.
Wine exports from France to the U.S. declined 15.9% in value in 2025, reaching 1.9 billion euros ($2.2 billion) from 2.4 billion euros in 2024, according to the American Association of Wine Economists.
By CEO NA Editorial Staff
