WASHINGTON (WOWO): President Donald Trump is threatening to impose a 100% tariff on wine and champagne imported from France unless the country eliminates its digital services tax on large American technology companies.

The warning came just hours before Trump departed for the Group of Seven summit in France, where trade issues are expected to be among the major topics of discussion between world leaders.

Speaking to the New York Post, Trump said the United States would have little choice but to respond if France continues to impose a 3% tax on major digital companies, many of which are based in the United States.

“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 said, referring to French President Emmanuel Macron. “All he has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

The White House reinforced Trump’s position, with a senior administration official telling FOX Business that the president has consistently opposed digital services taxes that disproportionately affect American technology firms.

France’s digital services tax has been in effect since 2019. The measure applies to large digital companies generating significant revenue in France and globally. The tax primarily affects major U.S.-based technology companies, including Google, Apple, Meta, Amazon and Microsoft.

American officials have long argued that the tax unfairly targets U.S. businesses and creates an uneven playing field for American companies operating overseas.

The latest threat revives a long-running trade dispute between Washington and Paris. During Trump’s first term, the administration threatened tariffs on a variety of French and European products in response to the digital tax. Similar concerns have resurfaced as several countries continue to explore taxes on large technology companies.

The potential tariff increase could have a significant impact on French exporters. According to reports, the U.S. market accounts for roughly one-fifth of France’s global wine sales, representing more than $2 billion annually. French wine and spirits are among the European Union’s leading exports to the United States.

Industry analysts note that French producers have limited flexibility because products such as champagne and cognac must be produced in specific geographic regions under international regulations.

The dispute also comes as other nations reconsider similar taxes. Canada withdrew plans for a digital services tax after trade talks with the United States intensified, while other countries have reportedly examined changes to their policies amid pressure from Washington.

The G7 summit, hosted by France in Évian-les-Bains, brings together leaders from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Trade, economic cooperation and international security are expected to dominate discussions during the summit.

No immediate response from the French government was reported following Trump’s latest comments. The tariff threat adds another layer of uncertainty to U.S.-European trade relations as negotiations continue between the two allies.