President Donald Trump has warned France should scrap a 3% tech “gross sales tax” or face 100% tariffs on U.S. imports of its wines and champagne, the NY Put up reported Monday.
The president issued the risk forward of this week’s G7 summit in Évian-les-Bains, France.
“I requested [President Emmanuel Macron] to not cost American firms, and in the event that they do, I’ve no alternative however to cost a 100% tariff on all champagnes and all wines popping out of France,” Trump informed the Put up.
The digital providers tax, authorized by French lawmakers in 2019, entails a 3% levy on gross revenues generated in France by massive expertise firms, together with U.S. giants comparable to Amazon, Meta and Alphabet.
Exports to the U.S. make up about one-fifth of the French wine business’s whole international gross sales, at about $2 billion yearly.
It’s not the primary time the Trump administration has focused France’s wine business with retaliatory measures.
In 2019, the U.S. raised the opportunity of imposing hefty fees on tech imports, together with wine, in response to the then-new levy, which it mentioned was discriminatory in opposition to U.S. firms.
In January this 12 months, Trump mentioned he would use a 200% tariff on French wines and champagne to power Macron to affix his Board of Peace initiative.
Wine exports from France to the U.S. fell 15.9% in worth in 2025 to 1.9 billion euros ($2.2 billion), from 2.4 billion euros in 2024, based on the American Affiliation of Wine Economists, citing information printed by the Directorate-Basic of Customs and Oblique Taxes, France’s customs service. In a LinkedIn publish, the AAWE mentioned it was not clear whether or not the autumn was attributable to tariffs or a broader client shift towards cheaper wines.
CNBC has approached the French authorities for remark.
