Trump threatens 100% tariff on French wine over tech tax as G7 meets, NY Post reports
US-French Trade Tensions Escalate Over Digital Tax
June 15 (Reuters) - President Donald Trump on Monday warned that the U.S. will “have no choice” but to apply 100% tariffs on French wine unless Paris eliminates its digital tax on American tech giants.
Trump’s Direct Warning to Macron
Trump said he delivered the warning directly to French President Emmanuel Macron, demanding he remove the 3% tax on U.S. tech giants or face duties in the American market.
Details of the Threat
“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 in an interview. “All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
Official Responses and Previous Tariff Threats
The White House and Elysee officials did not immediately respond to a request for comment.
History of Tariff Threats
Trump has threatened a 200% tariff on wine and other alcoholic beverages imported from France and the EU before, including in January this year and last year in March as transatlantic trade tensions escalated.
G7 Summit Context
Trump is due to arrive in France's Evian-les-Bains for a gathering of the Group of Seven wealthy nations, at a time when global leaders are increasingly wary of the United States.
Macron’s Diplomatic Role
He will be greeted by Macron, for whom this summit serves as a diplomatic capstone for his second and final term in office, which draws to a close next year.
Economic Impact of Tariffs
Alcohol is among the EU's top exports to the U.S., worth about €9 billion in 2024, according to Eurostat data, with certain products like Remy Martin cognac and champagne required to be produced in specific European regions.
Current Tariff Rates and Trade Negotiations
Wines and spirits exported to the U.S. from the EU currently face a 15% tariff - a rate the French have been lobbying hard to reduce to zero since Trump and European Commission President Ursula von der Leyen agreed a U.S.-EU trade deal in Scotland last summer.
Background on France’s Digital Tax
France has applied a 3% levy since 2019 on revenue from digital services earned in France by companies with revenues of more than €25 million there and €750 million worldwide.
Currency Exchange Rate
($1 = 0.8607 euros)
Reporting Credits
(Reporting by Chandni Shah in Bengaluru; Editing by Thomas Derpinghaus and Kim Coghill)
