Trump Threatens 100% Tariffs on French Wine Unless Macron Drops Tax On Amazon, Apple, Meta And Others

President Donald Trump has issued a stern warning to France, threatening to impose 100% tariffs on French wines unless France abolishes its digital tax on American tech companies.

Trump demanded that French President Emmanuel Macron eliminate the 3% tech tax.

In an interview with the New York Post, published on Monday, the President stated, “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.” He further suggested that Macron could alleviate this pressure by simply removing the sales tax.

This isn’t the first time Trump has threatened France with tariffs on its wine industry. Earlier this year, Trump warned of imposing 200% tariffs on French wines and champagnes after Macron reportedly declined to join his Gaza ‘Board of Peace’ initiative.

France Revives Big Tech Tax Debate

France’s digital services tax imposes a 3% levy on local revenue or GAFAM tax, generated by major U.S. tech companies, including Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon.com Inc. (NASDAQ:AMZN), Meta Platforms Inc. (NASDAQ:META), and Apple Inc. (NASDAQ:AAPL), raising about $700 million last year.

In October, lawmakers voted to double the tax to 6% and focus it more narrowly on the largest global firms. However, the proposal was later vetoed amid concerns it could trigger U.S. retaliation.

Earlier this month, a report indicated that the EU is preparing stricter cloud-computing requirements for major public-sector contracts under its upcoming Cloud and AI Development Act, a move that could affect U.S. tech giants.

The proposal aims to boost Europe’s digital sovereignty, reduce reliance on U.S. providers, and address concerns that U.S. laws such as the Cloud Act could allow American authorities access to data stored overseas.

The G-7 Agenda

Trump’s warning precedes the G7 summit in the  French lakeside resort of Évian-les-Bains on Monday, where the world’s seven leading democracies will meet to shape policies on international trade, security and economic issues.

France assumed the G7 presidency in 2026, succeeding Canada.

According to Reuters and other reports, this year’s G7 agenda would revolve around:

Ukraine: G7 leaders will reaffirm support for Ukraine, while President Volodymyr Zelenskyy pushes for direct talks with Russian President Vladimir Putin and a larger European role. European leaders also aim to show Trump that Europe is carrying much of Ukraine’s war burden.

Iran Deal: The summit comes after the U.S. and Iran announced a framework agreement to end their conflict. Leaders will focus on the details of the deal, especially the reopening of the strategically important Strait of Hormuz to global shipping. Discussions will also cover Iran’s nuclear and ballistic missile programs, with leaders from Egypt, Qatar, and the UAE joining talks.

AI and Global Economic Imbalances: France plans to highlight concerns about China overproducing, the U.S. overconsuming, and Europe underinvesting. The summit will also feature discussions with AI leaders, including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei, on the opportunities and risks of AI.

Developing Nation Debt: G7 leaders are expected to reiterate their commitment to addressing the growing debt burden facing emerging and developing economies, though specific policy measures remain unclear.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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