Trump Threatens 100% Tariff on French Wine at G7 Summit
President Donald Trump arrived at the G7 summit in Evian-les-Bains, France, on Monday after threatening to impose 100% tariffs on all French wine and champagne imports unless President Emmanuel Macron abolishes France’s digital services tax on American technology companies. The ultimatum, delivered in an exclusive interview with the New York Post, escalates a long-running trade dispute and sets the stage for a tense confrontation between the two leaders at the three-day summit.
The Threat and the Tax
Trump told the New York Post that he had directly warned Macron to scrap France’s 3% digital services tax, known as the GAFAM tax (Google, Apple, Facebook, Amazon, Microsoft), or face devastating duties on French wine exports to the United States. “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 said. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
Enacted in 2019, France’s digital services tax applies a 3% levy on revenue earned in France by large digital companies with more than approximately $29 million in French revenue and about $870 million in global revenue. According to Fox Business, the French finance ministry estimated the tax generated roughly $700 million in 2025. The measure has long angered U.S. officials because it disproportionately affects American technology giants.
Economic Stakes
The U.S. market accounts for about one-fifth of the French wine industry’s global sales, worth more than $2 billion annually. French wine and spirits exports to the U.S. already face a 15% tariff, and in 2025, French wine exports to the U.S. fell 15.9% in value to 1.9 billion euros ($2.2 billion), down from 2.4 billion euros in 2024, according to data cited by CNBC. Alcohol is one of the European Union’s top exports to the United States, worth about 9 billion euros ($10.5 billion) in 2024, according to Eurostat data.
A Pattern of Threats
This is the third time Trump has deployed the same tariff weapon against France. In 2019, the Trump administration threatened 100% tariffs on $2.4 billion in French goods — including champagne, cheese, and handbags — in retaliation for the original digital services tax. In January 2026, Trump threatened 200% tariffs on French wines and champagne to pressure Macron to join his “Board of Peace” initiative. And in March, he threatened tariffs on EU wine broadly after Brussels raised tariffs on American whiskey.
Trump’s latest comments directly contradict claims from Macron’s office last week that the digital tax dispute was “no longer up for debate” among G7 countries. A U.S. official dismissed that account as “not accurate,” according to the New York Post.
White House and French Positions
A senior White House official told Fox Business: “The president has been unequivocally clear on digital services taxes and other forms of extortion against American tech firms. The administration is committed to using the many legal authorities at our disposal to defend American workers and businesses.” White House spokesman Kush Desai directed reporters to a presidential memo Trump signed in February 2025, which declared that U.S. companies would no longer be allowed to “prop up failed foreign economies through extortive fines and taxes.”
Macron, meanwhile, faces a domestic political calculation. France holds a presidential election in 2027, and Macron cannot run again under French constitutional law. The digital tax is popular in France as a measure to make American tech giants pay their “fair share,” and yielding to Trump’s demands would be politically costly. According to Bloomberg, Macron has rebuffed Trump’s threats, refusing to drop the digital tax.
Broader Implications
The dispute has implications beyond U.S.-France relations. Canada shelved its digital tax in 2025 after the U.S. broke off trade talks, and Italy has reportedly weighed repealing its own levy. Britain has maintained its digital services tax under its current trade arrangements with the United States. The confrontation also undermines the OECD’s multilateral efforts to create a global tax framework for digital companies.
France’s National Assembly voted in October 2025 to double the digital tax to 6% and narrow the threshold, though ministers later vetoed the move. Lawmakers had initially considered a far larger increase before scaling it back amid industry pressure.
What to Watch For
The G7 summit, which runs through Wednesday in Evian-les-Bains, brings together the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The gathering comes as allied nations grow increasingly wary of Washington’s aggressive approach to trade disputes, with the New York Times reporting that European leaders “no longer view the United States as a partner on key issues.”
Possible outcomes range from a negotiated resolution — with Macron and Trump reaching a face-to-face compromise — to a full escalation, with Trump following through on the 100% tariff threat and triggering French or EU retaliation. A stalemate, in which both sides maintain their positions, could leave the threat hanging over future trade negotiations and further strain the transatlantic alliance.