The Trump administration has threatened to impose 100% tariffs on French wines and champagnes unless France dismantles its digital services tax targeting U.S. technology companies. President Macron publicly rejected the ultimatum, asserting that Washington has no right to dictate French and European regulatory choices. The standoff marks a fresh escalation in transatlantic trade tensions, arriving alongside separate U.S. diplomatic moves in the Middle East and Gulf.
A 100% tariff would effectively price French wine out of the U.S. market overnight, hitting luxury goods exporters and French agricultural names hard. More broadly, it signals that the U.S.-EU trade relationship remains unstable, which weighs on European equities and the euro. For U.S. tech investors, the linked demand — kill the French DST — confirms that big-tech tax exposure in Europe is a live geopolitical bargaining chip.
EU Trade Commissioner response: watch for an official EU retaliatory framework announcement, likely within days. Next G7 summit and any scheduled U.S.-EU trade talks. France's DST review calendar — no fixed date currently published.
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