This was reported by The New York Post.
“I asked him [Macron] not to charge American companies, and if they do, I will have no choice but to impose a 100% tariff on all champagne and all wines produced in France. All [Macron] needs to do is repeal the sales tax, and then he won’t be under such pressure,” the White House chief said in an interview with the newspaper.
As the publication notes, the threat was made immediately before the G7 summit in Evian-les-Bains, France. This directly contradicts statements by Macron’s administration that the conflict over this tax has been “resolved.”
France’s digital tax has been in effect since 2019. It amounts to 3% of the revenue generated in France by major technology companies. In 2025, it brought in about $700 million to the French budget. France had previously attempted to double the tax to 6%, but this measure was blocked by members of the Cabinet.
The U.S. is the largest market for French wine and champagne, accounting for about 20% of total exports (approximately $2 billion per year). A 100% tariff would make French products twice as expensive for American consumers and would deal a serious blow to the industry.
History of the Conflict
This conflict has a long history. Back during his first presidential term in 2019, Trump had already threatened France with similar tariffs in response to the passage of a digital services tax. At the time, the U.S. Chamber of Commerce even conducted an investigation into the matter.
Similar taxes have already led to concessions from other countries. Canada postponed the introduction of its digital tax after the U.S. suspended trade negotiations. Italy is currently considering the possibility of repealing or revising a similar tax.
