In an exclusive interview with the New York Post, US President Donald Trump has threatened to impose 100% tariffs on all French wines and champagne unless France scraps its 3% digital services tax on American technology companies.

Trump said he relayed the warning directly to French President Emmanuel Macron, giving him a clear condition: drop the levy or face punishing duties in the American market. The US accounts for roughly a fifth of the French wine industry's global sales, worth over $2 billion annually.

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

The threat sets up a potential flashpoint at the G7 summit currently underway in Evian-les-Bains, France, which runs until Wednesday.

France's digital services tax, commonly known as the GAFAM tax, has been in place since 2019. It levies a 3% charge on local revenues of large technology companies, including Google parent Alphabet, Amazon, Meta, and Apple. Because it targets gross revenue rather than profits, it falls most heavily on US tech giants, generating approximately $700 million for France last year, according to the French finance ministry.

The pressure escalated in October when France's National Assembly voted 296-58 to double the tax to 6% and tighten its scope to the largest global players, though the measure was later vetoed by ministers. Lawmakers had initially proposed a 15% hike before scaling back under industry pressure.

A senior source close to Macron told reporters last week that the issue was "no longer up for debate" among G7 countries, a claim a US official dismissed as "not accurate."

Trump's 100% tariff threat revives a figure first proposed by the US Trade Representative during a 2019 probe into the French levy.

White House spokesman Kush Desai pointed the New York Post to a presidential memo from February 2025 stating that American businesses would no longer be subjected to what it described as "extortive fines and taxes" by foreign governments. The memo directed US Trade Representative Jamieson Greer and the Treasury Department to consider reopening a formal investigation into the French tax.

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France's position puts it at odds with several allies. Canada shelved its own digital tax in 2025 after the US suspended trade talks, and Italy is reportedly considering a similar rollback. The UK, however, has retained its digital services tax under its current trade arrangements with the US.

The G7 groups Canada, France, Germany, Italy, Japan, the UK, and the United States.