TRUMP THREATENS 100% TARIFF ON FRENCH WINES OVER DIGITAL TAX

US President Donald Trump has threatened to impose a 100 percent tariff on French wine and champagne unless France removes its digital services tax on technology firms. Trump made the statement ahead of his arrival in the French Alps for a G7 summit. He said the United States had "no choice" but to implement the tariffs if Paris did not scrap the levy. French President Emmanuel Macron has already ruled out dropping the tax.

France introduced the three percent digital services tax in 2019, which applies to revenues earned by technology firms operating within French borders. The levy targets major US technology companies including Facebook, Amazon, Apple and Alphabet. The tax generates hundreds of millions of euros annually for the French state. Trump characterised the tariff threat as a necessary response to what he views as unfair taxation of American businesses.

Macron's refusal to abandon the digital tax sets the stage for potential trade tensions between the two nations. The threat represents an escalation in broader disputes over how technology companies are taxed internationally. Both sides have taken firm positions ahead of the G7 summit, suggesting little immediate prospect of compromise on the matter.