Trump Threatens 100% Tariffs on French Wine.
Trump Warns France: Scrap Tech "Sales Tax" or Face 100% Wine Tariffs
In an exclusive interview with the New York Post, President Trump revives a hardline trade tactic — using America's appetite for French wine as leverage in a long-running digital tax dispute.
President Donald Trump has issued a stark ultimatum to France: abandon its digital services tax on American tech companies, or face 100% tariffs on French wine entering the United States. The threat, delivered in an exclusive interview with the New York Post, revives a trade battle that first erupted during Trump's first term in 2019.
The Ultimatum
Speaking to the Post, Trump reportedly stated he had "no choice" but to retaliate against what the US views as an unfair levy targeting American tech giants. The French digital services tax (DST) imposes a 3% charge on revenue from digital services earned in France by companies with more than €25 million in French revenue and €750 million globally — a threshold that disproportionately captures US firms like Google, Amazon, Meta, and Apple.
— President Donald Trump, NY Post Interview
Why Wine?
Wine is France's second-largest export after aerospace, and the United States is by far its biggest single market — accounting for roughly a quarter of all French wine exports, valued at approximately €3.2 billion annually. By threatening wine tariffs, Trump is applying pressure to one of France's most visible, politically sensitive, and economically significant export sectors.
France's Digital Services Tax at a Glance
- Rate: 3% on digital services revenue
- Threshold: €25M French revenue / €750M global revenue
- Targets: Google, Amazon, Meta, Apple, and other US tech giants
- US Position: Departs from standard tax norms by taxing revenue rather than income
A Familiar Playbook
This is not the first time Trump has wielded wine tariffs against France. In 2019, his administration threatened 100% tariffs on French wine, cheese, and champagne over the same digital tax issue. The Office of the United States Trade Representative (USTR) published a list of $2.4 billion worth of French goods that could be targeted — a move that sent shockwaves through the European wine trade.
Earlier in 2026, Trump also threatened 200% tariffs on French wine and champagne in an attempt to pressure President Emmanuel Macron into joining a proposed Gaza "Board of Peace." The repeated use of wine as a diplomatic weapon underscores its strategic value in US-France trade negotiations.
What 100% Tariffs Would Mean
If enacted, a 100% tariff would effectively double the price of French wine in the US market overnight. The impact would ripple far beyond French vineyards:
American importers and distributors — many of whom are small, independent businesses — would face immediate margin pressure or forced pass-through pricing. US consumers would see Bordeaux, Burgundy, Champagne, and Loire Valley wines become significantly more expensive. And French producers, particularly smaller estates reliant on the American market, could see demand evaporate.
French officials have previously called such threats "unacceptable" and warned against conflating trade disputes with digital tax policy. The EU would likely respond with retaliatory measures, escalating a transatlantic trade conflict at a time of already strained relations.
The Broader Context
The DST dispute is part of a larger global conversation about how to tax multinational tech companies in an era of borderless digital commerce. While the OECD has pursued a multilateral framework for digital taxation, France moved unilaterally in 2019 — prompting the US to argue that American firms were being unfairly targeted.
With Trump's latest threat, the wine industry once again finds itself caught in the crossfire of geopolitical trade policy — a reminder that the bottle on your table is never far from the negotiating table.
