U.S. President Donald Trump said on Friday (July 26)the United States would hit France shortly with a "substantial reciprocal action" - and warned a new American tax on French wine was possible - after Paris announced a tax aimed at U.S. technology companies. Trump told reporters the tax decision was wrong and he threatened the key French export.
The United States is by far the largest single export market for French wine and spirits, which is France's second-biggest export after aerospace. The United States in 2018 accounted for nearly a quarter of all French wine exports or 3.2 billion euros' ($3.6 billion) worth. Trump also offered a pessimistic view on reaching a trade deal with China, saying Beijing may not sign one before the November 2020 election in hopes a Democrat who will be easier to deal with, will win.