President Donald Trump has threatened to hit French wine and champagne imports with 100 per cent tariffs, unless Emmanuel Macron scraps France’s digital services tax.

The US president reignited tensions with Paris ahead of the G7 summit in Evian-les-Bains, warning that French alcohol producers could be pulled into a wider dispute over taxes on major American technology companies.

Trump told the New York Post that he had asked Macron not to charge US firms under the digital levy, which was introduced in France in 2019.

“I asked him not to charge American companies and if they do, I have no choice but to charge a 100 per cent tariff on all champagnes and all wines coming out of France,” Trump said.

He added that Macron only needed to remove the tax to avoid the tariff threat.

Macron pushed back in an interview with French broadcaster TF1, arguing that Trump’s wider tariff policy was counterproductive and would damage both sides.

“That’s not how it works,” Macron said. “We have just concluded an agreement between Europe and the US on tariffs. Now we need stability.”

The French president said the digital services tax formed part of French and European law, adding that it was not for Washington to decide domestic tax policy in France.

Macron also warned that tariffs between G7 countries were “no good for anyone” and would do little to solve the US trade deficit while pushing up prices.

The row has caused concern among French wine and spirits producers, who exported €2.9bn worth of products to the US in the 12 months to April.

The US accounted for 18 per cent of all French wine and spirit exports over the period, ahead of the UK on 11 per cent and Germany on six per cent.

Alcohol remains a major contributor to France’s economy, adding €14.3bn to the country’s trade balance in 2024, according to French Customs.

French Federation of Wine and Spirits Exporters chairman Gabriel Picard called for a “balanced and constructive trading relationship between France and the US in the interests of both economies”.

France’s digital services tax requires companies with digital-services sales of at least €750m worldwide and at least €25m in France to pay 3 per cent of their French revenue.

The levy was designed to target large digital companies, including US tech giants such as Google and Amazon, although it also applies to groups from other countries, including Booking.com and Alibaba.

It is not the first time Trump has threatened France with tariffs over the tax. During his first term in 2019, he warned of retaliation after the levy was introduced and later threatened duties on French imports including cheese, champagne and handbags.

French wine and champagne already face a 15 per cent tariff under the current trade agreement between Washington and Brussels.

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