President Donald Trump has warned that France could face 100% tariffs on wine and champagne exports to the United States if it does not eliminate its digital services tax on American technology companies, escalating a dispute that has strained trade relations between Washington and Paris for years.
The remarks come as leaders gather for this week's G7 summit in Évian-les-Bains, France, where trade, security and ongoing conflicts in Ukraine and the Middle East are expected to feature prominently on the agenda.
Trump said he delivered the message directly to French President Emmanuel Macron, arguing that the tax unfairly targets American companies operating in France.
"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," Trump told the New York Post.
France's digital services tax, approved in 2019, imposes a 3% levy on revenue generated in France by large technology companies. The measure affects multinational firms including Amazon, Meta and Alphabet, which have substantial digital advertising, e-commerce and online platform operations in the country.
The dispute is not new. The United States Trade Representative under Trump's first administration launched investigations into France's digital tax shortly after it was enacted, arguing that the measure disproportionately targeted American companies. The U.S. subsequently threatened retaliatory tariffs on a range of French products, including wine and luxury goods, according to Reuters.
Trade tensions between the two allies resurfaced earlier this year when Trump said he would consider imposing a 200% tariff on French wines and champagne as part of efforts to persuade Macron to support his Board of Peace initiative, according to CNBC.
France remains one of the largest foreign suppliers of wine to the United States. Exports to the U.S. account for roughly one-fifth of the French wine industry's global sales and generate approximately $2 billion annually.
Recent trade data suggests French wine exports to the United States have already experienced a decline. Exports fell 15.9% in value during 2025 to €1.9 billion from €2.4 billion in 2024, according to data from France's Directorate-General of Customs and Indirect Taxes cited by the American Association of Wine Economists. The organization noted that it remains unclear whether the decline was driven primarily by tariff concerns or broader shifts in consumer demand toward lower-priced wines.
The digital tax dispute has been a recurring source of friction between the United States and several European governments. France was among the first countries to implement a national digital services tax after years of international negotiations over how multinational technology companies should be taxed. Similar measures have since been adopted or considered by several other countries, prompting repeated objections from Washington, according to The Wall Street Journal.
The issue has also been discussed within the Organization for Economic Cooperation and Development, which has sought to establish a global framework for taxing multinational corporations. Negotiations involving dozens of countries have continued for several years, though disagreements remain over implementation and enforcement, according to Financial Times.
French officials have consistently defended the tax as a temporary measure designed to ensure large digital companies contribute fairly to public finances while broader international tax reforms are negotiated. The French government had not publicly responded to Trump's latest comments as of Monday.
