U.S. President Donald Trump has threatened to impose 100 percent tariffs on all French wines and champagnes unless France scraps a 3 percent digital services tax targeting U.S. technology firms. The president conveyed this ultimatum directly to French President Emmanuel Macron, warning that Washington would have no choice but to charge the duties if the levy remains in place.
President Macron has refused to drop the digital tax, creating a potential standoff between the two leaders. These renewed trade tensions come as the leaders prepare to gather for the Group of Seven meeting in Évian-les-Bains, France.
French wine and spirits exporters have described the threat as bad news for an industry that is heavily dependent on exports and caught in a dispute beyond its control. The situation is particularly critical as the United States serves as the biggest importing country for French wines and spirits.