Macron brushes off Trump’s 100% tariff threat on French wine

French President Emmanuel Macron refused to drop the country’s digital tax after Donald Trump threatened new tariffs on wine, setting the stage for a confrontation when the two leaders meet at the Group of Seven summit in Evian.

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“It’s not the U.S. that decides European or French law — that’s normal and it won’t be any different, at least as long as I am around,” Macron said on TF1 television from the G7, starting today and held at a picturesque town in the French Alps.

This is Macron’s second time hosting the G7 summit and it’s his last one as leader given his presidential term ends in May. He’s had a rocky relationship with Trump, and at this late stage in his political career he’s less bothered about pleasing Trump and is taking a more combative approach. 

So when it comes to the trade threats and Trump’s habit of backing down, some leaders are more prepared to take it in their stride especially if it’s something they’ve heard before or if they need to demonstrate Europe can stand firm.

Trump told the New York Post in an interview ahead of the G7 that the U.S. will “have no choice” but to slap more tariffs on French wines unless France drops a digital tax hurting U.S. tech companies.

After the Supreme Court struck down Trump’s global tariffs in February, the president lacks a clear path to quickly implement a tariff on imports of French wine. That ruling prevented Trump from imposing duties with emergency powers. He could use other legal provisions to tariff French wines, but that process would require trade investigations that could take months.

In response to Macron’s comments, a White House official reiterated that the administration is committed to using many legal authorities at its disposal to defend American workers and businesses. The official didn’t elaborate when asked what tariff authority the U.S. might use.

Trump and Macron have for years clashed over the digital services taxes that apply to the likes of Amazon.com Inc. and Meta Platforms Inc. France led the way introducing one in a broader international disagreement on the taxation of the profits of global tech giants. 

The two men will meet this afternoon after Trump touches down. And at the end of the summit, Macron is throwing him a celebratory dinner at the Palace of Versailles, near Paris.

But the resurgence of the dispute compromises Macron’s efforts to get Trump to cooperate at a crucial G7 meeting over coming days that will address a host of other issues, starting with the U.S.-Iran deal on reopening Hormuz. 

“We’ll have a respectful but firm discussion that will consist of saying how things work,” Macron said. “We’re going to resolve all this in a respectful way through discussion.”

The U.S. President has repeatedly threatened tariffs on French wine, pledging a duty of as much as 200% earlier this year in a separate disagreement over Paris’s rejection of an invitation to join his so-called Board of Peace. 

Beyond the symbolism of targeting an emblematic product, U.S. customers make up a large share of France’s alcoholic drinks exports. 

The White House did not respond to inquiries about Macron’s response or elaborate on Trump’s threat. 

Macron said U.S. tariffs are not resolving any trade problems and starting to drive up prices for American consumers. He called for the application of the U.S.-EU trade deal concluded last year that would see the bloc face 15% tariffs on most of its exports. 

“Now, we need stability,” Macron said. “Tariffs are good for nobody and above all between G7 countries.”