According to the New York Post, President Trump warned France could trigger a
new trade fight if it does not drop its 3% digital services tax, threatening
100% tariffs on all French champagne and wine if the levy remains. He said he
had directly told President Macron to cancel the tax; the U.S. market accounts
for roughly one-fifth of French wine sales, over $2bn annually. France’s 3%
digital services tax, effective since 2019, targets gross revenues from digital
services and applies to companies including Alphabet, Amazon, Meta and Apple,
hitting U.S. tech firms because it is levied on revenue rather than profit.
