Trump threatens 100% tariff on French wine over tech tax
Why it matters: The U.S. buys about one-fifth of French wine exports, putting roughly $2 billion in annual sales at risk ahead of the G7 summit.
President Donald Trump threatened to impose a 100% tariff on French wine and champagne unless France drops its 3% digital services tax on large technology companies. The warning came before this week's Group of Seven summit in Evian-les-Bains, where Trump is due to meet French President Emmanuel Macron. France's levy, approved in 2019, applies to gross revenue generated in France by major tech firms including Amazon, Meta and Alphabet. The U.S. is the biggest export market for French wines and spirits, accounting for about 21% of sales abroad in 2025. French and European wines shipped to the U.S. already face a 15% tariff, and French exporters said sales to the U.S. fell sharply last year.