Macron Rejects Trump's Threat, Vows to Keep Digital Tax

French President Emmanuel Macron pushed back against US President Donald Trump ‘s threat of imposing 100% tariffs on French wine, saying Paris would not scrap its digital tax on American technology companies under pressure from Washington, reported Reuters. “This digital tax, decided by Europeans, implemented by several countries, is part of our law,” Macron said in an interview with French television channel TF1 on Monday. “It’s not the United States that decides on the Europeans’ law.” The remarks came after Trump warned that the United States could impose 100% tariffs on French wines and champagne unless France removes its digital services tax on major US technology firms. Trump told New York Post that he delivered a direct message to French leadership, linking the country’s digital services tax with possible punishment on one of its most important export sectors. Trump told New York Post that he warned French President Emmanuel Macron that 3% digital tax on large US technology firms would result in severe trade consequences. He spoke about possible 100% tariffs on French wines and champagne entering the American market. “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 New York Post. He added that the move would remain unnecessary if France dropped the tax. The United States remains one of the biggest buyers of French wine, accounting for a large share of its global exports. Any tariff of this scale could sharply raise prices for American consumers and hit French producers hard. Trump also said he conveyed the warning directly to French President Emmanuel Macron, adding pressure on diplomatic discussions already underway between the two sides. The dispute centers on France’s digital services tax, introduced in 2019. The levy places a 3% charge on revenue earned in France by major global technology firms, including US-based companies, reported New York Post. France designed the tax to target large digital platforms operating across borders. Officials in Paris say that digital companies must pay fair taxes where they generate revenue. However, US officials say the structure unfairly targets American firms and creates a trade imbalance. The tax has already brought in hundreds of millions of dollars annually for France. Lawmakers in Paris previously debated increasing the rate, but the government stopped the move after concerns about retaliation from the United States. The US side has warned that such policies could trigger formal trade action. Trump said earlier investigations had already laid the groundwork for tariffs on French luxury exports, including wine, reported New York Post. The issue now feeds into broader tensions at the G7 Summit in Évian-les-Bains, where leaders of major economies meet to discuss trade, security, and global economic policy. France also faces differing positions from allies. Canada dropped its own digital tax plans after US pressure, while Italy has considered changes. The United Kingdom has kept its system in place under separate trade arrangements. White House officials said US agencies may revisit earlier trade probes linked to France’s tax system, reported New York Post. French officials, however, maintain that domestic taxation policy remains a sovereign decision.