The United States government has announced that it intends to impose a 100% tariff on French wines in response to France's recent digital services tax.
The move is seen as a measure to protect American companies operating in the digital space, particularly those that have been affected by the French tax.
French President Emmanuel Macron has expressed defiance in the face of the proposed tariff, stating that France will not back down in the face of pressure from the US.
However, the French wine industry is said to be extremely concerned about the potential impact of the tariff, with many producers fearing that it could lead to significant losses for their businesses.
The US government has been critical of the French digital services tax, arguing that it unfairly targets American companies and creates an unfavourable business environment.
The tariff is expected to be imposed in the coming weeks, pending final approval from US trade officials.