Washington DC - President Donald Trump threatened to slap a 100% tariff on French wine and champagne in retaliation against Paris' digital service tax.

In 2019, France imposed a 3% levy on the revenues earned by technology firms – including American giants such as Facebook, Amazon, Apple, and Google's parent company Alphabet – within the country's borders.

Trump said he asked French President Emmanuel Macron "not to charge American companies," according to an interview he gave with the New York Post.

"If they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France."

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

Macron is due to host Trump on Monday before the G7 summit gets underway at the spa resort of Evian on Lake Geneva.

The US is the biggest importing country for French wines and spirits, accounting for 21% of the overall export market last year. French and European wines already face a 15% tariff when exported to the US, up from an earlier 10%.

The export of French wines and spirits to the United States slumped by 21% last year, according to the French Federation of Wine and Spirits Exporters.

In January, Trump threatened 200% tariffs on French wine over France's decision to decline an invitation to join his "Board of Peace."

In a desperate attempt to salvage trade talks with the US last year, Canada decided to scrap its digital services tax last year. Proponents for the taxes argue they will force such companies to pay more in