French President Emmanuel Macron has refused to lift the country's digital tax after U.S. President Donald Trump threatened to impose tariffs on French wine, setting the stage for a possible clash between the two leaders when they meet on the sidelines of the G7 summit in Evian.
"It is not the United States that determines European or French law - that is normal and that will not change as long as I am here," Macron said in an interview on the sidelines of the G7 summit in Evian, in the French Alps.
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This is the second time Macron has hosted the G7 summit and the last time he will host the meeting as French president, as his presidential term will end in May next year.
In an interview before the G7 summit, Trump said that unless France abolished the digital tax that harmed American technology companies, the United States would have "no choice" but to impose more tariffs on French wine.
After the U.S. Supreme Court overturned Trump's global tariff measures in February, the U.S. government lacked a clear legal path to quickly impose tariffs on French wine. The ruling prevents Trump from continuing to use emergency powers laws to impose tariffs. Although Trump can still impose tariffs on French wine based on other legal provisions, the relevant trade investigation process may take months.
In response to Macron's statement, a White House official reiterated that the government is committed to using all legal authorities at its disposal to safeguard the interests of American workers and businesses. The official did not elaborate further when asked what tariff authority the United States might act under.