Trump Threatens 100% Tariff on French Wine: Trade War Escalates

President Donald Trump has once again threatened to impose a 100% tariff on French wine and champagne, escalating a long-running trade dispute over France's digital services tax. The warning, reported by the New York Post, comes just ahead of the G7 summit in Évian-les-Bains, France, and marks the third time Trump has targeted French wine exports since 2019.

What Is the French Digital Services Tax?

The French digital services tax (DST), enacted in 2019, imposes a 3% levy on the revenue of tech companies with global revenue exceeding €750 million and at least €25 million in French revenue. Critics argue it disproportionately affects American tech giants like Amazon, Meta, and Alphabet. The tax was designed to ensure that large digital companies pay a fair share in the countries where they generate revenue, but the United States views it as discriminatory.

Trump's Latest Threat: 100% Tariff on French Wine

In a statement to the New York Post, Trump said: 'I have asked (French President Emmanuel Macron) not to impose taxes on American companies. If they do, I have no choice but to impose a 100% tax on all champagnes and wines from France.' The threat is widely seen as a negotiating tactic ahead of the G7 summit, where trade tensions are expected to dominate discussions.

This is not the first time Trump has wielded the threat of wine tariffs. In 2019, he wrote on Truth Social: 'We will soon give a substantial response to Macron's foolishness. I have always said that American wine is better than French wine!' Then-French Finance Minister Bruno Le Maire responded firmly: 'France is sovereign and France determines its own tax rules. And that will remain.'

In March 2025, Trump again threatened a 200% tariff on European wine, champagne, and spirits in retaliation for EU tariffs on American whiskey, jeans, and motorcycles — measures imposed in response to Trump's steel and aluminum tariffs. That threat, like the 2019 one, never materialized.

Impact on French Wine Industry

The French wine and spirits export federation (FEVS) told Reuters it regrets the turmoil and called for 'responsible behavior' and 'balanced and constructive trade relations' between the two countries. French wine and spirits have already been hit hard in 2025 by a rise in US baseline import tariffs — first to 10% and then to 15%. A 100% tariff would effectively double the price of French wine and champagne in the US market, likely devastating exports.

The US-EU trade war impact on European luxury goods could be severe. France exported approximately €3.6 billion worth of wine and champagne to the United States in 2024, making it the largest market for French wine exports. A 100% tariff would likely cause a sharp decline in sales, hurting small vineyards and major houses alike.

Previous Tariff Threats: A Pattern of Bluff?

Despite three major threats since 2019, Trump has never actually imposed a targeted tariff on French wine. Analysts suggest the threats are primarily rhetorical — aimed at pressuring France and the EU on trade and tax policy. However, the cumulative effect of baseline tariff increases has already taken a toll. The FEVS has urged both sides to de-escalate and find a negotiated solution through the OECD framework for digital taxation.

What's at Stake for US-France Trade Relations?

The dispute highlights broader tensions in the US-EU trade relationship. The global digital tax negotiations at the OECD have stalled, leaving countries like France to pursue unilateral measures. The US has argued that such taxes unfairly target American companies and has threatened retaliatory tariffs under Section 301 of the Trade Act of 1974.

French officials have insisted they will not back down. President Macron has previously stated that the digital tax is a matter of tax justice. Meanwhile, the G7 summit in Évian-les-Bains this week provides a high-profile stage for both leaders to address the impasse — or for Trump to make good on his threat.

Frequently Asked Questions

Why is Trump threatening to tax French wine?

Trump is retaliating against France's 3% digital services tax, which he says unfairly targets US tech companies like Amazon, Meta, and Google.

Has Trump imposed wine tariffs before?

No. Despite threatening tariffs in 2019, March 2025, and now, Trump has not yet implemented a specific wine tariff, though baseline US tariffs on EU wine have risen to 15% in 2025.

What is the French digital services tax?

It is a 3% tax on revenue from digital services for companies with global revenue over €750 million and French revenue over €25 million, enacted in 2019.

How would a 100% tariff affect French wine prices?

It would roughly double the price of French wine and champagne in the US, likely causing a sharp drop in demand and hurting French exporters.

Could this lead to a wider trade war?

Yes. The US-EU trade dispute timeline shows that tit-for-tat tariffs could escalate further, affecting other goods like cheese, spirits, and industrial products.

Sources

BNR Nieuwsradio, New York Post, Reuters, French Wine and Spirits Export Federation (FEVS).