Trump threatens 100% tariff on French wine over tech tax as G7 meets: NY Post

PRESIDENT Donald Trump on Monday (Jun 15) warned that the US will “have no choice” but to apply 100 per cent tariffs on French wine unless Paris eliminates its digital tax on American tech giants.

Trump said he delivered the warning directly to French President Emmanuel Macron, demanding he remove the 3 per cent tax on US tech giants or face duties in the American market.

“I asked him not to charge American companies, and if they do, I have no choice but to charge a 100 per cent tariff on all champagnes and all wines coming out of France,” Trump told the New York Post in an interview. “All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

The White House and Elysee officials did not immediately respond to a request for comment. 

Trump has threatened a 200 per cent tariff on wine and other alcoholic beverages imported from France and the EU before, including in January this year and last year in March as transatlantic trade tensions escalated. 

Trump is due to arrive in France’s Evian-les-Bains for a gathering of the Group of Seven wealthy nations, at a time when global leaders are increasingly wary of the United States.

He will be greeted by Macron, for whom this summit serves as a diplomatic capstone for his second and final term in office, which draws to a close next year.

Alcohol is among the EU’s top exports to the US, worth about 9 billion euros in 2024, according to Eurostat data, with certain products like Remy Martin cognac and champagne required to be produced in specific European regions.

Wines and spirits exported to the US from the EU currently face a 15 per cent tariff - a rate the French have been lobbying hard to reduce to zero since Trump and European Commission President Ursula von der Leyen agreed a US-EU trade deal in Scotland last summer.

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France has applied a 3 per cent levy since 2019 on revenue from digital services earned in France by companies with revenues of more than 25 million euros there and 750 million euros worldwide. REUTERS