Trump threatens 100% tariffs on French wine and champagne over digital tax dispute

President Donald Trump warned that if France does not repeal its 3% digital services tax on U.S. tech companies, he could impose 100% tariffs on French wine and champagne. The threat was made in an interview with the New York Post and references a prior proposal of even higher duties.

The United States accounts for roughly one‑fifth of global sales of French wines, valued at more than $2 billion annually, while total French alcohol exports to the U.S. are around €10 billion ($10.5 billion). Analysts say such tariffs would raise prices, disrupt market flows and intensify trade tensions between Washington and Paris, potentially prompting negotiations on the digital tax and broader trade policy.

France introduced the 3% tax in 2019 on revenues from digital services exceeding €25 million locally, aiming at large U.S. tech firms. The dispute highlights the broader clash between the U.S. and the EU over taxation of digital companies.