President Trump threatens France with 100% tariffs over the digital tax | economy

US President Donald Trump said the US would have “no choice” but to impose 100% tariffs on French wine if France does not cancel the digital tax imposed on US technology companies.

Trump added, in an interview with the New York Post, that Paris is required to withdraw the tax targeting major technology companies, warning of the repercussions of its continuation on trade relations between the two countries.

“I asked him not to impose tariffs on American companies, and if they did, I would have no choice but to impose a 100% tariff on all champagne and wine coming from France,” he said.

He added: “All French President Emmanuel Macron has to do is abandon the sales tax, so that he is not exposed to this kind of pressure.”

What is digital tax?

Since 2019, France has imposed a 3% digital services tax on the revenues of major digital companies that generate global revenues exceeding 750 million euros (about 810 million dollars) and revenues within France exceeding 25 million euros (about 27 million dollars).

The tax targets activities such as digital advertising, data sales, and major electronic platforms.

Washington considers that the tax mainly targets giant American technology companies such as Apple, Amazon, Google, and Meta, and describes it as a discriminatory measure against American companies.

The American market is one of the most important markets for French wine and spirits exports, and European data indicate that exports of alcoholic beverages from the European Union to the United States amounted to about 9 billion euros (about 9.72 billion dollars) in 2024, making any high American duties a source of concern for French producers.

The recent escalation comes within a broader approach adopted by the Trump administration towards digital taxes imposed on American technology companies in a number of countries, as Washington has threatened over the past months to take trade measures against countries that apply similar taxes, considering that they unfairly target American companies.