France refuses to repeal digital tax despite US threat of 100% tariffs

President Emmanuel Macron announced that France will keep its 3% digital services tax on U.S. technology firms, rejecting pressure from President Donald Trump. Trump warned on social media that any country imposing a digital tax would face a 100% tariff on all goods shipped to the United States, specifically threatening French wine and spirits. The dispute comes as the two leaders prepare to meet at the G7 summit on the shores of Lake Geneva. France has applied the levy since 2019 to companies earning more than €25 million locally and €750 million worldwide. French exporters warn that the tariff threat could harm an industry that accounts for billions of euros in annual U.S. sales.