President Donald Trump has threatened to impose a 100% tariff on French wine and Champagne in response to France’s 3% tech tax.  

The tax, which was first proposed and approved by French lawmakers in 2019, imposes a 3% levy on gross revenues generated in France by large technology companies, including US firms such as Amazon, Meta and Alphabet. 

In a warning to French president Emmanuel Macron, Trump re-threatened high alcohol taxes – mirroring an earlier threat to impose a 200% tariff on French wine and spirits after Macron declined to join Trump’s Board of Peace. 

Speaking to the New York Post about Macron, the American president said: “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.” 

If implemented, the move would represent a large increase on the current 15% tariff rate applied to wine and spirits exported from France to the US. 

Despite the ultimatum, Macron has said that France will not bow to pressure from Trump. He told French television channel TF1: “Tariffs don’t do anyone any good, especially tariffs between G7 countries.” 

When asked whether he would yield to the threats, Macron said he would not. “Because that is not how it works.” 

In response to the latest comments, French winemakers have expressed concern. Speaking to Reuters, wine and spirits trade group FEVS said: “This new threat is bad news for our industry, which relies heavily on exports.” 

The organisation called for balanced and constructive trade relations between France and the US in the interests of both economies.