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US President Donald Trump has warned France that he will impose a 100% tariff on French wine imports if Paris does not repeal the tax imposed on big technology companies.
According to a New York Post report, the threat was made ahead of the G7 summit in France, intensifying existing trade tensions between Washington and Paris.
France's so-called "digital tax" mainly targets large American tech giants, such as companies in the online services, advertising and e-commerce sectors. Washington has argued for years that the measure disproportionately affects American businesses.
In an interview with the New York Post, Trump said he warned French President Emmanuel Macron that France would face heavy trade tariffs if it continued the digital tax imposed on American technology companies.
"I asked him not to tax American companies and, if he does, I will have no choice but to put a 100% tariff on all champagne and all wines coming from France," Trump said.
The American president added that the solution lies solely in the hands of Paris.
"All Macron has to do is abolish this sales tax and he won't face this kind of pressure."
The statements are Trump's clearest threat yet of trade retaliation against France and are part of Washington's early opposition to European digital taxes, which the United States sees as measures that disproportionately hit American tech giants.
This stance is expected to cloud contacts between the two leaders on the sidelines of the G7 summit in France, as it adds to already existing disagreements over trade, taxation of multinationals and the management of global economic imbalances.
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