President Trump has issued a stark warning to France, suggesting the potential for a new trade conflict with the United States. In an exclusive interview with The Post, Trump stated that unless France removes its digital tax on American tech companies, the U.S. would be compelled to impose 100% tariffs on French wines.
Trump revealed that he directly communicated this warning to French President Emmanuel Macron, urging him to abandon the 3% tech tax. He highlighted the significant impact such tariffs could have on the French wine industry, which relies on the American market for a substantial portion of its global sales, valued at over $2 billion annually.
“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 told The Post. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
This ultimatum sets the scene for a tense encounter at Monday’s G7 summit in Évian-les-Bains, where leaders from the world’s wealthiest democracies will convene to discuss global trade, security, and economic policies.
Trump’s statements contradict last week’s claims from Macron’s office, the ÉlysĂ©e Palace, which suggested that the two countries had quietly resolved their long-standing disagreement over the taxation of Silicon Valley companies.
A senior source close to the French president told reporters last week that the issue was “no longer up for debate” among G7 countries, a claim that a U.S. official immediately refuted as “not accurate.”
France’s digital services tax, also known as the GAFAM tax, has been in place since 2019. It applies a 3% levy on the local revenue of major tech companies such as Google, Amazon, Meta, and Apple.
This tax particularly affects U.S. tech giants as it targets gross revenue rather than profits, generating approximately $700 million last year according to the French finance ministry.
The pressure mounted in October when France’s National Assembly voted 296-58 to double the tax to 6% and limit its application to the largest global entities. However, this proposal was subsequently vetoed by ministers.
Initially, lawmakers even considered a punitive 15% increase before reducing it due to industry pressure. Then-Economy Minister Roland Lescure warned that an excessive tax would provoke disproportionate American responses.
Trump’s recent threat revives the idea of imposing a 100% tariff, initially suggested by the U.S. Trade Representative during a 2019 investigation into the French tax.
Macron has been seen as a “Trump whisperer,” capable of negotiating with Trump, as evidenced by a last-minute agreement at the 2019 G7 in Biarritz. However, the Trump administration is now adopting a more assertive global stance.
In addition to France and the United States, this year’s G7 includes Canada, Germany, Italy, Japan, and the UK.
When asked for comments, White House spokesman Kush Desai directed The Post to a February 2025 presidential memo stating that U.S. businesses would no longer support failing foreign economies through extortionate fines and taxes.
The memo instructed U.S. Trade Representative Jamieson Greer and the Treasury Department to consider reopening a formal investigation into the French tax. Neither department provided a response to requests for comment.
France’s aggressive tax stance is causing a rift with several key allies who have succumbed to U.S. pressure. Canada abandoned its digital tax in 2025 after the U.S. halted trade talks, and Italy is reportedly considering repealing its levy.
However, Britain has maintained its digital services tax under its current trade agreements with the United States.
The G7 summit runs until Wednesday in the lakeside town of Evian, France.
This group of the world’s seven largest “advanced” economies, which dominate global trade and the international financial system, includes Canada, France, Germany, Italy, Japan, the UK, and the United States.
Russia joined in 1998, forming the G8, but was excluded after it annexed Crimea. China has never been a member, despite its large economy and being the world’s second-most populous country.
