In an interview with the New York Post on June 14, Trump stated that he has demanded French President Emmanuel Macron abolish the digital services tax (DST) imposed on American tech companies.
"I asked that they not tax our companies," Trump said, adding, "If France does that, we will have no choice but to impose a 100% tariff on all champagne and wine coming from France." He emphasized that the only action Macron needs to take is to eliminate the tax, stating, "Then there will be no pressure."
The DST was introduced to prevent multinational companies from shifting profits to countries with lower corporate taxes to evade taxes. Since 2019, France has imposed a 3% tax on revenues generated by major tech firms, including Amazon, Meta, Apple, and Google's parent company, Alphabet.
According to the French Ministry of Finance, the DST generated approximately $700 million (about 1 trillion won) in revenue last year. This tax is based on revenue rather than profit, which has drawn criticism for placing a heavy burden on American tech giants.
Recently, the French government indicated that the conflict with the U.S. over the DST had been largely resolved. However, Trump's comments reveal that opposition to the DST from the U.S. persists.
Trump has opposed the French DST since his first term, arguing that it is a discriminatory measure targeting American companies. In fact, the U.S. Trade Representative (USTR) considered imposing a 100% tariff on French products in response to the DST back in 2019.
In this context, the New York Post reported that the USTR and the U.S. Treasury are currently reviewing whether to resume an official investigation into the French DST.
* This article has been translated by AI.
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