France must drop its tax on American technology or face a 100% tariff on its wine, President Donald Trump warned hours before departing for the Group of Seven Summit.
The U.S. will "have no choice" but to apply the tariffs if French President Emmanuel Macron does not end its 3% levy on large digital services companies.
"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 the New York Post in an interview. "All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure."
The warning raises the prospect of a renewed transatlantic trade clash as Trump heads to Évian-les-Bains, France, for the G7 summit Macron will be hosting. The gathering comes as U.S. allies remain wary of Washington’s increasingly aggressive approach to trade disputes.