Ahead of his arrival in Évian-les-Bains, France, for the G7 summit, US President Donald Trump warned on Monday that Washington would have “no choice” but to impose a 100% tariff on French wines if Paris does not scrap its digital services tax on American technology companies.
Speaking to the New York Post, Trump said he had delivered the warning directly to French President Emmanuel Macron, demanding that France remove its 3% tax on major US technology firms or face punitive duties on French wine exports to 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 the newspaper. “All Macron has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”
Trump has made , including proposals for tariffs of up to 200% on French and European alcoholic beverages as trade tensions between Washington and Brussels escalated.
Trump is expected to meet Macron during the G7 summit in France. The meeting is likely to be closely watched as Macron enters the final year of his second and constitutionally final presidential term.
Prime Minister Narendra Modi is expected to hold bilateral talks with Trump on the sidelines of the , marking their first face-to-face meeting in around 16 months. Trade and regional security issues are expected to feature prominently in the discussions.
The backdrop to the talks includes a sharp exchange between New and Washington over recent US military actions in the Gulf region. India and the US traded diplomatic barbs after American missile strikes on commercial vessels reportedly killed three Indian seafarers in one attack on June 10.
External Affairs Minister S Jaishankar said he had spoken with US Secretary of State Marco Rubio on Friday and conveyed India’s strong protest. In a post on X, Jaishankar said he had “reiterated India’s strong protest at the attacks by the US Navy in the Gulf that killed three Indian mariners” and stressed that “such lethal actions against commercial shipping are not justified”.
Hours later, the US Department of State defended its position. Deputy Spokesperson Tommy Pigott said Rubio and Jaishankar had discussed recent developments in the Strait of Hormuz.
“The Secretary stressed that all commercial vessels should immediately comply with orders from US forces as they seek to uphold peace and security in the Strait. He underscored that violations of the US blockade and the illicit transport of Iranian oil will not be tolerated,” Pigott said.
