President Donald Trump has warned France must scrap a 3% tech “sales tax” or face 100% tariffs on U.S. imports of its wines and champagne, the NY Post reported Monday.<\/p>\n
The president issued the threat ahead of this week’s G7 summit in \u00c9vian-les-Bains, France.<\/p>\n
“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,”\u00a0Trump told the Post<\/a>.<\/p>\n The digital services tax, approved by French lawmakers in 2019<\/a>, involves a 3% levy on gross revenues generated in France by large technology companies, including U.S. giants such as Amazon<\/a>, Meta<\/a> and Alphabet<\/a>.<\/p>\n Exports to the U.S. make up about one-fifth of the French wine industry’s total global sales, at about $2 billion annually. <\/p>\n It is not the first time the Trump administration has targeted France’s wine industry with retaliatory measures.<\/p>\n In 2019, the U.S. raised the possibility of imposing hefty charges<\/a> on tech imports, including wine, in response to the then-new levy, which it said was discriminatory against U.S. companies.<\/p>\n In January this year, Trump said he would use a 200% tariff on French wines and champagne<\/a> to force Macron to join his Board of Peace initiative. <\/p>\n Wine exports from France to the U.S. fell 15.9% in value in 2025 to 1.9 billion euros ($2.2 billion), from 2.4 billion euros in 2024, according to the American Association of Wine Economists, citing data published by the Directorate-General of Customs and Indirect Taxes, France’s customs service. In a LinkedIn post<\/a>, the AAWE said it was not clear whether the fall was caused by tariffs or a broader consumer shift toward cheaper wines.<\/p>\n CNBC has approached the French government for comment.<\/p>\n