President Donald Trump has warned France that it will have to eliminate a 3% technology-related “sales tax” or face 100% tariffs on wine and champagne imports from the United States, the New York Post reported on Monday.
The president issued the threat ahead of this week’s G7 summit in Evian-les-Bains, France.
“I asked[President Emmanuel Macron]not to impose tariffs on American companies. If American companies are going to impose tariffs, the only option is to impose a 100% tariff on all Champagne and all wine coming out of France,” Trump told the newspaper.
The digital services tax, approved by French lawmakers in 2019, includes a 3% tax on the gross revenue generated in France by large technology companies, including giant US companies. Amazon, meta and alphabet.
Exports to the United States account for about one-fifth of the French wine industry’s global sales, amounting to about $2 billion annually.
This is not the first time the Trump administration has targeted the French wine industry with retaliatory measures.
In 2019, the U.S. raised the possibility of imposing hefty taxes on imports of high-tech products, including wine, citing the then-new tax as discriminatory against U.S. companies.
In January, President Trump said he would impose 200% tariffs on French wine and champagne and force President Macron to join his peace commission initiative.
CNBC has contacted the French government for comment.
