Facing the heat: Trump warns of tariffs on French wine ahead of digital tax talks
France’s vineyards have become the latest battleground in Donald Trump’s global trade wars, with the US President threatening to slap a tariff on French wines in retaliation to a planned tax on large multinational tech firms.
Trump has threatened winemakers with high tariffs ahead of talks today over France’s plans to tax the revenues of global corporates such as Google and Amazon.
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Global leaders are meeting at the G7 summit in France to discuss digital transformation, with Trump warning ahead of the meeting that US tariffs on French wines will depend on a digital tax “deal”.
European authorities have been attempting to crack down on financial deals for tech giants such as Apple, which is currently locked in a $14.4bn battle with the EU over its tax contributions.
The move has escalated into a heated war of words between France and the US, marking a new front in Trump’s tariff battles that have so far been dominated by a tit-for-tat standoff with China.
Threats of a levy from the US are likely to raise concerns among French winemakers at a time when many have been reportedly set back by damage to their crops following some of the hottest temperatures on record.
Trump, who is teetotal, wrote on Twitter last month: “France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home country, the US.”
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“We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!”
He added that American wine “is better than French wine,” prompting a rebuke from the French agriculture minister who blasted Trump’s threats as “completely moronic” and “absurd”.