President Donald Trump threatened to impose 100% tariffs on French wines if Paris continues taxing U.S. tech giants.

In an interview with the New York Post, Trump said he personally warned French President Emmanuel Macron that France must eliminate its digital services tax targeting major American technology companies or face severe consequences for one of its most important export industries.

"I asked him not to charge American companies, and if they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France," Trump told the Post.

The warning sets up a potential showdown at the Group of Seven summit in Évian-les-Bains, France, where Trump and Macron are expected to meet as trade tensions rise again between Washington and Paris.

At the center of the dispute is France's digital services tax, first implemented in 2019.

The levy imposes a 3% tax on revenue generated in France by major technology companies, including Google, Amazon, Meta, and Apple.

French lawmakers have also considered increasing the tax and narrowing its focus even further toward the largest global tech firms.

Trump has long argued that such policies unfairly target successful American companies while allowing foreign governments to profit from U.S. innovation.

"All [Macron] has to do is get rid of the sales tax, and he wouldn't have that kind of pressure," Trump said.

The president's position aligns with a February White House directive declaring that American businesses would no longer be used to "prop up failed foreign economies through extortive fines and taxes."

The administration has directed federal agencies to review potential retaliatory measures against countries imposing discriminatory digital taxes on U.S. firms.

Macron signaled Monday that he is unwilling to back down.

Speaking before the G7 summit opened, the French leader said tariffs between allied nations benefit no one and rejected the idea that France would abandon its digital tax under pressure from Washington.

"No, because that is not how it works," Macron said when asked whether he would yield to Trump's demands.

French wine and spirits producers, meanwhile, are watching the dispute nervously.

The United States remains one of the largest markets for French wine and champagne, accounting for billions of dollars in annual exports.

Industry groups have warned that a 100% tariff could severely damage sales.

The dispute also comes as several countries have reconsidered similar taxes.

Canada recently shelved its own digital services tax after trade friction with Washington, while Italy has reportedly explored repealing its levy.

Reuters contributed to this report.