In an exclusive interview with the New York Post, President Donald Trump has warned that he will place a 100% tariff on French wine if it doesn’t remove its “tech tax”.
France’s digital services tax imposes a 3% levy on local revenue generated by companies such as Amazon, Meta and Apple. The policy targets gross revenue rather than profits.
“I asked him 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 said. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
The tax and retaliatory tariffs are expected to be a hot topic at the G7 (Group of Seven) summit this week in Evian, France. The G7’s members are the US, Britain, Canada, France, Germany, Italy and Japan. This year, the leaders of India, South Korea, Kenya and Brazil are also among those invited.
Exports to the US make up about one-fifth of the French wine industry’s total global sales, around $2 billion annually.
Earlier this year, the US President threatened to impose a 200% tariff on French wines and Champagnes, when French President Emmanuel Macron declined to join Trump’s Board of Peace initiative.
When asked by a reporter about Macron saying he would not join the board, Trump said: “Did he say that? Well, nobody wants him because he will be out of office very soon.”
“I’ll put a 200% tariff on his wines and Champagnes, and he’ll join, but he doesn’t have to join.”