President Donald Trump issued a sharp ultimatum to France on Monday, warning that the United States would impose 100% tariffs on French wines and champagnes if Paris refuses to eliminate its digital services tax targeting American technology companies.
Trump said he raised the issue directly with French President Emmanuel Macron, demanding that France scrap its 3% levy on U.S. tech giants or face steep duties on French alcohol products sold in the American market.
Speaking to the New York Post, Trump spelled out his position bluntly: “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. All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
Neither the White House nor officials at the French presidential palace responded to requests for comment following the remarks.
The potential tariffs would hit a significant trade category. Alcohol ranks among the European Union’s largest exports to the United States, valued at roughly €9 billion — approximately $10.46 billion — in 2024, according to figures from Eurostat. Some products, including Remy Martin cognac and champagne, are required by regulation to be produced in specific regions of Europe.
France first put its digital services tax in place in 2019. The levy applies a 3% charge on revenue that digital companies earn within France, targeting firms with at least €25 million in French revenue and €750 million in worldwide revenue.
