France Faces 100% Wine Tariffs Unless It Kills Digital Tax, Trump Says

President Trump warned France on Friday that it risks a fresh trade war with the United States unless it abandons its digital tax on American tech companies.

In an exclusive interview with The Post, Trump said he told outgoing French President Emmanuel Macron that the U.S. would impose 100% tariffs on all French wines and champagnes if Paris does not scrap its 3% levy on the local revenue of companies like Google, Amazon, Meta, and Apple.

"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 Post. "All [Macron] has to do is get rid of the sales tax, and he wouldn't have that kind of pressure."

The threat escalates a years-long dispute over France's digital services tax, commonly called the GAFAM tax after its targets. France imposed the 3% levy in 2019, and it has since generated roughly $700 million annually for the French treasury, according to the French finance ministry.

The tax targets gross revenue rather than profits, which means it falls hardest on U.S. tech giants. France's National Assembly voted in October to double the rate to 6% and narrow its scope to target only the largest global players, but ministers vetoed the increase. Lawmakers had originally floated a 15% hike before scaling it back under industry pressure.

Then-Economy Minister Roland Lescure warned at the time that a "disproportionate" tax would invite "disproportionate" American reprisals.

That reprisal is now taking shape.

Trump's ultimatum revives a 100% tariff level first proposed by the U.S. Trade Representative during a 2019 investigation into the French tax. The American wine market accounts for one-fifth of the French wine industry's global sales, valued at more than $2 billion annually, according to industry figures.

The comments also contradict claims made last week by Macron's office, the Élysée Palace, that the two nations had quietly settled their dispute. A senior source close to the French president told reporters the issue was "no longer up for debate" among G7 countries, an account a U.S. official immediately dismissed as "not accurate."

The confrontation sets the stage for a tense meeting at Monday's G7 summit in Évian-les-Bains, where seven of the world's wealthiest democracies gather annually to address trade, security, and economic policy.

France's aggressive tax approach has isolated it from several key allies. Canada shelved its own digital tax in 2025 after the U.S. broke off trade talks, and Italy is reportedly weighing a repeal. Britain has retained its digital services tax under its current trade arrangements with America.

White House spokesman Kush Desai pointed The Post to a presidential memo from February 2025 stating that American businesses would no longer "prop up failed foreign economies through extortive fines and taxes." The memo tasked U.S. Trade Representative Jamieson Greer and the Treasury Department with deciding whether to reopen a formal probe into the French levy. Neither department responded to requests for comment.

The G7 summit runs through Wednesday in the French lakeside town. The group includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Russia joined in 1998 to form the G8, but was excluded after it seized Crimea. China has never been a member.