President Donald Trump says France could face a major trade dispute with the United States if it continues imposing a digital services tax on large American technology companies, as reported by the New York Post.
In an interview published June 15, Trump said he personally warned outgoing French President Emmanuel Macron that France must eliminate its tax on American tech firms or risk facing steep tariffs on French wine and champagne exports entering the United States.
“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,” Trump told The New York Post.
“All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
The warning comes just before leaders gather for the Group of Seven summit in Évian-les-Bains, France. The annual meeting brings together leaders from several of the world’s largest advanced economies to discuss trade, security, and economic policy.
Trump’s comments also challenge recent statements from Macron’s office suggesting that disagreements between Washington and Paris over the digital tax had largely been resolved.
According to reporting cited by the Post, a senior source close to the French president told reporters last week that the issue was “no longer up for debate” among G7 nations.
A U.S. official reportedly disputed that characterization, calling it “not accurate.”
France’s digital services tax, often referred to as the GAFAM tax, was enacted in 2019. The levy applies a 3% tax on revenue generated in France by major technology companies, including Google parent Alphabet, Amazon, Meta, and Apple.
Because the tax is assessed on revenue rather than profits, critics have argued that it disproportionately affects large American technology firms. According to France’s finance ministry, the tax generated roughly $700 million in revenue last year.
The issue became more contentious in October when France’s National Assembly voted 296-58 in favor of legislation that would have doubled the tax rate to 6% while narrowing its focus to the largest global companies.
The proposal was ultimately vetoed by government ministers before becoming law.
Lawmakers had initially discussed increasing the levy to as much as 15% before reducing the proposal. At the time, then-Economy Minister Roland Lescure warned that a “disproportionate” tax could provoke “disproportionate” retaliation from the United States.
Trump’s latest remarks revive a tariff proposal first advanced during his first administration. In 2019, the Office of the U.S. Trade Representative proposed tariffs reaching 100% on certain French products after investigating the digital tax.
The White House signaled earlier that the administration remains focused on the issue.
White House spokesman Kush Desai pointed to a February 2025 presidential memorandum stating that American businesses would no longer “prop up failed foreign economies through extortive fines and taxes.”
That memorandum directed U.S. Trade Representative Jamieson Greer and the Treasury Department to determine whether a formal investigation into the French tax should be reopened.
France’s position has increasingly diverged from some allies that have reconsidered similar policies. Canada reportedly abandoned its own digital services tax in 2025 after trade negotiations with the United States were disrupted.
Italy has also reportedly considered repealing its tax, while the United Kingdom has maintained its digital services tax under its current trade arrangements with Washington.
The G7 summit continues through Wednesday in Évian. Current members include France, Germany, Italy, Japan, the United Kingdom, Canada, and the United States.
Russia was removed from the group after its seizure of Crimea, while China has never been a member.
