The president returns to the 3% digital tax imposed by France during his first administration.
On the eve of the G7 conference in France, Donald Trump is once again threatening to impose massive customs duties on France if it does not remove its 3% digital tax on American technology companies. “I asked (French President Emmanuel Macron) not to charge American companies, and if they do, I have no choice but to impose a 100% customs duty on all champagnes and wines coming from France,” the president said. The New York Post.
This news may come as a surprise to the French government and wine industry, as sources close to Macron recently said the issue “is no longer up for debate,” according to the Job. This risks becoming a point of contention at the G7, as the French government is unlikely to remove the tax.
The French “GAFAM” tax (Google, Apple, Facebook, Amazon and Microsoft) concerns the gross and non-net revenues generated by these technology giants. Imposed in 2019 as part of a deal with the first Trump administration, it generates about $700 million in revenue annually. Sales of French wine and champagne in the United States are worth at least $2 billion.
The French Lower House recently voted to double the digital tax to 6%, but ministers vetoed it due to the risk of US retaliation. Removing the tax would be a political gamble in France, as a large portion of the country’s voters worry about dependence on American technology.
Trump is increasingly seen as an attack dog for big tech, using tariffs as a stick to force countries to abandon digital taxes and levies. US companies also urged Trump to punish countries like Australia for banning social media and using news media in search results. Canada, for example, repealed its digital tax in 2025 under pressure from the Trump administration. Other blocs, however, resisted, notably the United Kingdom, which retained its own 2% tax on digital services.
The US president often makes tariff threats, so the latest could be another “Taco”-style bluff aimed at extracting concessions in other areas. And if the wine tax were implemented, it could quickly be thrown out in a trade court, like Trump’s previous tariffs. However, this will undoubtedly precipitate one or more discussion sessions between the American and French heads of state.
