French wine and spirits exporters said Monday that President Donald Trump’s threat to impose 100% tariffs on French wine and champagne represents unwelcome news for an industry that depends heavily on exports.
Trump said the United States would apply those tariffs unless France repeals its 3% digital tax on U.S. technology companies. The association representing the sector, the French wine and spirits exporters group FEVS, described the situation as one in which the industry is effectively caught up in a dispute outside its control and urged both sides to behave responsibly.
FEVS called for balanced trade relations between France and the United States and stressed the importance of maintaining constructive economic ties in the interest of both nations. The group emphasized that an industry reliant on foreign markets, notably the U.S., would suffer if punitive measures are implemented.
The tariff threat follows earlier warnings from the U.S. administration. Trump previously threatened tariffs of 200% on wine and other alcoholic beverages from France and the European Union in January and March 2025 as trade tensions between the regions rose. Those earlier statements raised concerns within the industry about the potential scale and scope of duties affecting exports.
FEVS framed the issue as part of a broader trade dispute tied to the French digital tax and did not propose specific remedies beyond urging both governments to preserve constructive commercial relations. The group’s comments reflect unease that policy decisions aimed at other sectors - in this case, a tax targeting U.S. technology companies - could spill over and materially affect France’s beverage exporters.
The exporters’ statement stopped short of predicting concrete outcomes, instead focusing on the need for responsible behavior and balanced ties between the two economies. For now, the industry remains positioned as an affected party caught between diplomatic and trade negotiations conducted at the governmental level.
Summary
French wine and spirits exporters say U.S. tariff threats tied to France’s 3% digital tax pose a clear risk to an export-dependent sector and have urged both countries to prioritize constructive trade relations.
Key points
- President Trump warned of 100% tariffs on French wine and champagne unless France removes a 3% digital tax on U.S. tech firms.
- FEVS said the wine and spirits industry is caught in a dispute beyond its control and called for responsible, balanced Franco-American trade ties.
- Earlier in the year, threats of 200% tariffs on wine and other alcoholic beverages from France and the EU were also issued in January and March 2025 amid rising trade tensions.
Risks and uncertainties
- Possible U.S. imposition of steep tariffs linked to the French digital tax could materially affect wine and spirits exporters - impacting the beverages sector and cross-border trade flows.
- The industry is subject to decisions made in a dispute focused on a separate sector, namely technology firms subject to the digital tax, creating uncertainty for exporters and related market participants.
- Escalating trade tensions between France/the EU and the United States could lead to further protective measures affecting broader trade and economic relations.