U.S. President Donald Trump has told France to eliminate its digital services tax or risk facing significant tariffs on French wines and champagne, according to the New York Post’s report on Monday.
Trump reportedly delivered this message directly to outgoing French President Emmanuel Macron, stating the American market could impose 100% duties on these imports, which currently represent around 20% of France’s wine sales worldwide and are valued at over $2 billion annually.
The warning comes just days ahead of the G7 summit set in Évian-les-Bains, France. Trump’s remarks contradict recent statements from Macron’s office, which suggested that the U.S. and France had resolved their dispute regarding taxation on major technology firms.
France’s digital services tax, implemented in 2019, places a 3% charge on revenue generated in the country by large international tech companies, particularly targeting U.S. firms such as Amazon, Meta, and Alphabet. The tax, applied to gross revenues and not just profits, has disproportionately affected American corporations, generating about $700 million last year according to the French finance ministry.
Tensions escalated in October when France’s National Assembly approved a proposal to double the tax to 6% and apply it only to the largest global technology companies. However, this move was ultimately blocked by French ministers.
France’s continued enforcement of the digital tax differentiates it from other allies. Canada abandoned its own digital tax initiative in 2025 following a breakdown in trade negotiations with the U.S., and Italy is reportedly re-evaluating its position. In contrast, the United Kingdom maintains its digital services tax under its trade agreements with the U.S.
This conflict is not new. The Trump administration previously considered high tariffs on French wine in 2019 after France introduced the tech levy. Most recently, in January, Trump also stated that he might apply a 200% tariff on French wine and champagne to encourage Macron’s participation in the Board of Peace.
