President Donald Trump has a message for France: drop the digital tax on American tech companies, or your wine gets a 100% tariff. In an interview with the New York Post published Monday, Trump said he told French President Emmanuel Macron to scrap the 3% levy on U.S. tech giants, or face a 100% tariff on all French wines and champagnes.
“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,” Trump said. He added that Macron could avoid the tariff simply by removing the sales tax.
This isn't the first time Trump has aimed at France's wine industry. Earlier this year, he threatened 200% tariffs after Macron reportedly declined to join his Gaza ‘Board of Peace' initiative. Now, with the G7 summit kicking off Monday in the French lakeside resort of Évian-les-Bains, the timing is hard to ignore.
France Revives Big Tech Tax Debate
France's digital services tax—often called the GAFAM tax—hits revenue from major U.S. tech companies, including Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Apple (AAPL). It raised about $700 million last year. In October, lawmakers voted to double the tax to 6% and narrow it to the largest global firms, but the proposal was vetoed amid concerns it could trigger U.S. retaliation.
Earlier this month, reports emerged that the EU is preparing stricter cloud-computing requirements for major public-sector contracts under its upcoming Cloud and AI Development Act. That move could affect U.S. tech giants by boosting Europe's digital sovereignty and reducing reliance on American providers, partly due to concerns that U.S. laws like the Cloud Act could allow American authorities access to data stored overseas.
The G7 Agenda
Trump's warning sets the stage for the G7 summit, where the world's seven leading democracies will discuss international trade, security, and economic issues. France assumed the G7 presidency this year, succeeding Canada. According to reports, the agenda includes:
Ukraine: Leaders will reaffirm support for Ukraine, while President Volodymyr Zelenskyy pushes for direct talks with Russian President Vladimir Putin and a larger European role. European leaders also aim to show Trump that Europe is carrying much of Ukraine's war burden.
Iran Deal: The summit comes after the U.S. and Iran announced a framework agreement to end their conflict. Leaders will focus on the details, especially reopening the Strait of Hormuz to global shipping. Discussions will also cover Iran's nuclear and ballistic missile programs, with leaders from Egypt, Qatar, and the UAE joining talks.
AI and Global Economic Imbalances: France plans to highlight concerns about China overproducing, the U.S. overconsuming, and Europe underinvesting. The summit will feature discussions with AI leaders, including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei, on the opportunities and risks of AI.
Developing Nation Debt: G7 leaders are expected to reiterate their commitment to addressing the growing debt burden facing emerging and developing economies, though specific policy measures remain unclear.
So, as the G7 gets underway, the wine tariff threat looms large. Whether Macron blinks or Trump follows through remains to be seen, but one thing is clear: the French wine industry is once again caught in the crossfire of trade tensions.
