Trump threatens France with 100% wine tariffs

Donald Trump arrived at the G7 summit in France threatening a 100% tariff on French wine, escalating a dispute over Paris's digital tax on tech giants. The US president's arrival followed his 80th birthday celebration and the announcement of a deal with Iran, raising hopes among European diplomats that he might be in a more amenable mood.

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Trump threatened host Emmanuel Macron over the weekend with 100 percent punitive tariffs on wine if France does not abolish its three percent digital tax for tech corporations.

However, Trump's threat signaled a continuation of the fractured G7 dynamic that has emerged since his return to office. Gone are the days of unified G7 or G20 declarations. Instead, the summit, like its predecessor in Canada in 2025, will focus on less contentious, non-binding individual statements on topics such as artificial intelligence, irregular migration, and the protection of minors online.

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The earlier unity of the Western world has shown significant cracks.

The ongoing wars in Ukraine and Iran loom large over the proceedings. French President Emmanuel Macron has invited Ukrainian President Volodymyr Zelenskyy, and attention will be on Trump's response to recent Russian assaults, which damaged a historic Kyiv monastery. Despite Trump's past refusal to visit Kyiv, diplomatic initiatives by Germany, France, and Britain aim to align him with their stance on the conflict, even as he spoke with Russian President Vladimir Putin.

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The two major wars in Iran and Ukraine hang like a Damocles sword over the meeting.