Trump threatens 100% US tariff on French wine over digital services tax
US President Donald Trump threatened to impose a 100% tariff on French wine and champagne if Paris does not abandon its digital services tax, the New York Post reported. The warning landed hours before Trump was due to attend the G7 summit opening Monday in Évian-les-Bains. France collects the levy on revenue from large technology platforms, several of which are headquartered in the United States.
US President Donald Trump told the New York Post that the United States would impose a 100% tariff on French wine and champagne if France does not repeal its digital services tax. The warning came as Trump prepared to attend the G7 summit opening Monday in Évian-les-Bains, France.
France introduced a 3% digital levy on large technology platforms in 2019, arguing that firms operating in the country should pay taxes there regardless of where profits are booked. The measure has produced steady friction with Washington, which says it disproportionately targets US companies such as Google, Meta and Amazon. Previous retaliatory tariff threats had been suspended pending an OECD-led multilateral framework that has yet to take full hold.
A 100% duty would roughly double the US shelf price of French wine. The Fédération des Exportateurs de Vins et Spiritueux says the United States is the single largest export market for French vintners. The threat sets a confrontational tone for the opening of the G7, which is also due to discuss the new US-Iran framework agreement and the war in Ukraine. This is not investment advice.
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