Trump threatens to impose a 100% tariff on France if Macron does not eliminate the harmful digital tax

The President of the United States, Donald Trump, issued a new warning to France and threatened to impose 100% tariffs on all French wines and champagnes if Paris maintains the digital tax that targets large American tech companies, reigniting a trade dispute that threatens to dominate the agenda of the G7 summit taking place this week in the French city of Évian.

In an interview with the New York Post, Trump stated that he personally conveyed the message to the French president, Emmanuel Macron, and asserted that the United States cannot remain indifferent to a discriminatory tax policy against American companies.

''I asked him not to tax American companies and, if they do, I have no choice but to impose a 100% tariff on all champagnes and wines from France,'' Trump declared. ''All he has to do is eliminate that tax and he wouldn't have that pressure''.

The warning represents the latest escalation in a dispute that began in 2019 when France approved a tax on digital services aimed at taxing the revenues earned in French territory by tech giants like Google, Amazon, Meta, and Apple. Washington has argued for years that the measure disproportionately affects American companies and constitutes a hidden trade barrier.

According to data from the French Ministry of Finance, the levy generates hundreds of millions of dollars annually for the state coffers. However, the Trump administration maintains that it is a policy specifically designed to raise funds at the expense of American companies, as it taxes gross revenues rather than profits, a feature that the White House considers particularly harmful.

Macron's response was defiant. In statements to the French channel TF1, the president asserted that tariffs do not benefit either party and rejected the possibility of conceding to American pressures.

''No, because that's not how things work,'' he stated when asked if he would modify French tax policy to avoid trade retaliation.

The statements contrast with messages conveyed days earlier by the Élysée Palace, which had suggested that the dispute was practically resolved between both governments. Sources close to Macron even claimed that the issue was no longer part of the pending discussions within the G7, a version that was quickly denied by U.S. officials.

The economic importance of the conflict is considerable. The United States represents approximately one-fifth of global French wine exports and is one of the most valuable markets for an industry that sells more than $2 billion annually in U.S. territory.

For the White House, this trade dependency gives Washington a powerful negotiating tool. Officials close to the president believe that tariff threats are a legitimate response to unfair policies specifically targeting American companies.

Tensions further escalated after French lawmakers pushed last year for a proposal to double the digital tax from 3% to 6%. Although the initiative was ultimately blocked by the government, the debate reinforced Washington's concerns about the possibility of new tax burdens aimed at American tech giants.

Trump's stance is also supported by recent events in other countries. Canada suspended its own digital tax after the United States interrupted bilateral trade negotiations, while Italy is considering modifying or eliminating similar measures to avoid conflicts with Washington.

From the White House, they argue that these decisions demonstrate that several Western allies have recognized the risk of maintaining taxes that could be interpreted as discriminatory against American companies.

The Trump administration had already previously considered imposing tariffs of up to 100% on French products during trade investigations conducted in 2019. Now, with the issue back on the table and the G7 summit as the main stage, the U.S. president seems determined to resume a strategy of direct pressure.

The controversy also reflects a central line of Trump's economic policy since his return to the White House: using the weight of the U.S. market to protect domestic companies from harmful foreign regulations and taxes.