"Trump Threatens Tariffs, Demands France Abolish U.S. Big Tech Digital Tax"
Remarks in Interview Ahead of G7 Summit
U.S. President Donald Trump has demanded that France abolish its Digital Services Tax (DST), which targets major American big tech companies, ahead of the Group of Seven (G7) summit.
He also warned of a potential new trade war, threatening to impose a 100% tariff on French wine and other products if France does not comply.
In an interview with the New York Post on the 14th (local time), President Trump said, "I asked French President Emmanuel Macron not to impose taxes on American companies," and added, "Otherwise, I told him we would have no choice but to impose a 100% tariff on French champagne and wine."
The DST is a system designed to prevent multinational companies from avoiding taxes. Since 2019, France has imposed a 3% tax on the French revenue of U.S. big tech firms such as Amazon, Meta, and Apple. According to the French Ministry of Finance, related tax revenue last year reached approximately $700 million.
Trump's remarks came ahead of the G7 summit. Although the French government recently stated that the conflict with the U.S. had been resolved, analysts say this latest statement could reignite tensions between the two countries.
President Trump has criticized the DST since his first term, calling it a discriminatory tax targeting American companies. The United States Trade Representative (USTR) considered imposing a 100% tariff on French products in 2019 as a response.
It is reported that the USTR and the U.S. Department of the Treasury are currently reviewing whether to officially resume investigations into France's DST. Canada also withdrew its plan to introduce the DST last year following trade friction with the United States, and Italy is reportedly considering abolishing its DST. However, the United Kingdom continues to maintain a similar system.
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Meanwhile, this year's G7 summit is being held in Evian, France, from June 15 to 17. The group consists of the United States, United Kingdom, France, Germany, Italy, Canada, and Japan.
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