The U.S. may impose tariffs on French wine due to the digital services tax
15 June 16:59
U.S. President Donald Trump has issued a stern warning to France: if Paris does not repeal its digital services tax, the U.S. may impose a 100% tariff on French wine and champagne.
This was reported by The New York Post, according to "Komersant Ukrainian".
The French digital services tax, also known as the GAFAM tax, was introduced in 2019. It imposes a 3% levy on the revenue generated in France by major tech corporations such as Google, Amazon, Meta, and Apple.
This tax has sparked outrage in the U.S., as it primarily affects American companies.
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Trump’s reaction
Trump noted that he had already discussed this issue with French President Emmanuel Macron.
According to Trump, France must abandon this tax, otherwise the U.S. “has no choice” but to impose heavy tariffs.
He said:
“I told him not to tax American companies. If they do that, I have no choice but to impose a 100% tariff on all champagne and wine from France. All it takes is to remove this tax, and there will be no pressure.”
The threat of tariffs on French wine is serious, as the U.S. market accounts for about one-fifth of global sales of French wine, exceeding $2 billion annually. This could deal a serious blow to the French wine industry.
As a reminder, U.S. President Donald Trump has given the European Union until July 4, 2026, to finalize a trade agreement with the United States. If Brussels fails to finalize the agreement, Washington may sharply increase tariffs on European goods, particularly automobiles.
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