Trump Threatens France With 100% Tariff on Champagne and Other Wines if Tech Tax Isn’t Removed

President Donald Trump attends UFC Freedom 250 on the South Lawn of the White House, Sunday, June 14, 2026, in Washington. (Photo: AP Photo/Alex Brandon)

In an exclusive interview published by the New York Post on Monday, President Trump threatened an 100% tariff on French wine imports unless the country removes its tax on American tech companies. The announcement came hours ahead of Trump’s arrival in France for the G7 summit, setting the stage for a tense showdown with French President Emmanuel Macron.

The dispute revolves around France’s digital services tax, which charges a 3% levy on tech companies with global revenues exceeding €750 million (~ US $870 million) and at least €25 million (~ US $29 million) in France. The policy — which targets Google, Apple, Facebook, Amazon and Microsoft, among others — is commonly referred to as the “GAFAM tax.” The tax generated roughly $700 million last year alone, according to French finance officials.

Whether that’s a price the country is willing to pay for its wine industry remains to be seen. The United States accounts for approximately a fifth of the French wine industry’s global sales, equivalent to around $2.38 billion in 2025.

“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 outlet. “All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

It isn’t the first time that Trump has used wine exports as a bargaining tool. In early 2025, the President threatened a 200% tariff on “wines, champagnes and alcoholic products” originating from the European Union after the bloc announced a 50% retaliatory tariff on American whiskey.

Whether or not Trump follows through on his latest tariff warning, French officials are keenly aware of the potential fallout.

Following a long-winded bout over electric car subsidies, China imposed duties of up to 34.9% on European brandy last July. The move took a devastating toll on French cognac, which makes up over 99% of all EU brandy imports to China. Major producers including Pernod Ricard, LVMH and Remy Cointreau were spared from the tariff if they agreed to sell cognac at a minimum price.

The G7 summit will be held in Évian-les-Bains, France, between June 15 and June 17. Though Trump did not mention the summit by name in his interview with the Post, it’s all but certain that his comments were intended to set the agenda for upcoming negotiations.