The US will impose a 100% tariff on French wines and champagne unless Paris removes its 3% digital services tax on US tech giants. This was warned by US President Donald Trump to the "New York Post".
"I asked him not to impose a tariff on American companies and if they do, I have no choice but to impose a 100% tariff on champagne and all wines coming from France. "All Macron has to do is eliminate the sales tax and he won't be under that pressure," Trump said.
The United States remains France's largest single export market for wine, with the industry's exports to the U.S. estimated at more than $2 billion a year. The GAFAM tax, also known as France's digital services tax, imposes a 3% rate on domestic revenue from companies like Apple, Amazon, Meta and Alphabet, targeting gross revenues, not profits.