Trump threatens 100% tariff on French wine and champagne over digital tax

President Trump has returned to a threat he has repeatedly used against France – a 100% tariff on French wine and champagne unless France abolishes its digital services tax on technology companies.

French President Emmanuel Macron replied France won't bow to pressure from Trump and scrap its digital services tax.

France introduced the 3% tax in 2019. It applies to major technology firms,  including Facebook, Amazon, Apple and Google's parent company, Alphabet.

The United States is the largest export market for French wines and spirits, accounting for 21% of total exports last year, according to the French Federation of Wine and Spirits Exporters.

French and European wines exported to the US already face a 15% tariff, up from 10% previously.

Exports of French wines and spirits to the United States fell by 21% last year, according to the federation.