Trump Threatens French Wine With 100% Tariff Over Digital Tax

Trump’s demand follows direct communication with President Emmanuel Macron, as he seeks to dismantle the tax structure that impacts U.S. firms operating within France. During an interview with the New York Post, the President noted that the pressure on the French wine industry would evaporate if the sales tax on digital services were rescinded.

France implemented the 3% tax in 2019, specifically designed to capture revenue from tech companies with substantial earnings both in France and abroad. While both the White House and the Elysee Palace have remained silent on the specifics of current negotiations, the economic stakes are considerable. According to Eurostat, alcohol exports from the European Union to the United States are valued at approximately €9 billion annually, making the wine sector a critical component of the trade relationship.