President threatens 100 percent tariff on French wine over digital services tax
President Trump said he would impose a 100 percent tariff on all French wine and champagne exports if France continues collecting its three percent digital services tax on U.S. technology companies. The tax, enacted in 2019, raises about $700 million a year. The issue is expected to be discussed at the upcoming G7 summit.
France 24President Trump said he would impose a 100 percent tariff on all French wine and champagne exports if France continues collecting its three percent digital services tax on U.S. technology companies. The tax applies to gross revenue earned in France by large technology firms. It covers companies including Google, Apple, Facebook, Amazon and Microsoft.
It generates roughly $700 million annually for the French government. U.S. technology companies have pressed for its removal. The French government has indicated the tax is no longer under discussion.
French officials have previously considered doubling the rate to six percent, but that proposal was set aside over concerns about U.S. retaliation.
