President Trump has warned France that it will face a 100% tariff on its wine exports to the US unless it drops its digital tax on American tech giants. In an exclusive interview, Trump stated that he has given French President Emmanuel Macron an ultimatum: ditch the 3% tech levy or face devastating duties in the American market.
The French digital services tax, which has been in place since 2019, imposes a 3% levy on the local revenue generated by US tech companies such as Google, Amazon, and Apple. The tax has been a point of contention between the two countries, with the US threatening reprisals if it is not scrapped.
The dispute is set to come to a head at this week's G7 summit in Évian-les-Bains, where the two leaders will meet to discuss global trade and economic policy. Macron has refused to back down, stating that tariffs do not benefit anyone, especially between G7 countries.
