President Donald Trump said he would impose heavy tariffs on French wine and champagne if France does not repeal its digital services tax [1, 2].

The threat signals a potential escalation in trade tensions between the U.S. and France during a period when France is chairing the G7 summit. The dispute centers on how European nations tax the revenues of American technology companies.

In a televised interview in New York, Trump said that if France continues the taxation, he has no choice but to impose a tariff on French champagne and wine [1]. Depending on the source, the proposed tariff rate is cited as either 100% [1] or 200% [2].

The conflict stems from a three percent digital services tax [1] that France introduced in 2019 [1]. This tax targets revenues earned by U.S. tech giants, including Google, within French borders.

Trump said that the pressure on France would cease if President Emmanuel Macron simply abolished the tax [1]. The U.S. administration has long viewed such digital taxes as discriminatory against American companies.

France has maintained that the tax ensures a fair contribution from companies that generate significant value in the country without having a physical presence there. The timing of these threats coincides with the G7 summit, where the two leaders are expected to interact on global economic policy.

“Trump said he would impose heavy tariffs on French wine and champagne if France does not repeal its digital services tax.”

This move reflects a broader strategy of using targeted tariffs on luxury goods to leverage policy changes in foreign tax law. By targeting the wine and champagne industries, the U.S. applies economic pressure to specific French sectors to force a repeal of the digital services tax, potentially disrupting the diplomatic cohesion of the G7 summit.