An investigation by the journalists of Radio France has revealed how the Trump Administration exerted direct pressure on the French Government to prevent an increase in the tax levied on the advertising revenues collected in France of Google (Alphabet), Apple, Facebook (Meta), Amazon and Microsoft (together GAFAM), despite the support of a majority in the French Assembly.
It started at the end of October 2025, when the French Parliament considered an amendment as part of the 2026 finance bill to increase said tax (introduced in 2019) from 3 to 15%. The objective was to force the GAFAM companies, structurally undertaxed, to pay more taxes on income generated from the French territory.
As expected, the Trump administration reacted very badly. The Republican head of the Ways and Means Committee published a press release stating: “the increase proposed by France would constitute an unjustified attack against American digital companies”.
In France, this went unnoticed by the general public, but not by the Government. The next day, the Minister of Economy and Finance Roland Lescure took to the podium of the Assembly and said: “Be careful, I implore you. We must be aware that when we enter a [sporting] match, boldness is good, but having your head smashed against the wall is less good,” explicitly mentioning the risk of American trade sanctions, particularly on wines and spirits. Despite some opposition, the amendment was changed from a 15% to a 6% tax, and passed.
But for the Republicans, 6% was still too much. On November 25, they expressed their “deep concern” about “recent actions by France”, and called on Trump to react in a “firm” manner by activating the lethal weapon of American trade law, the famous “section 301” which allows the United States to take unilateral sanctions against other countries in the event of trade disputes.
This letter reached the French authorities, but somehow also fund its way into the hands of the main alcohol lobbies (e.g.: the French Federation of Spirits, the Interprofessional Champagne Wine Committee, etc.) which then put pressure on the parliamentarians.
For example, the Champagne Committee warned: “If an increase in the tax were adopted, US sanctions would specifically target France and its most emblematic products, first and foremost wines and spirits.” They warned against the risk of “singling out oneself vis-à-vis the United States.”
During a further vote, the amendment was withdrawn. Its author, MP Cazeneuve declared: “I would have preferred that we increase this tax, but there is an American president capable of unpredictable and violent reactions. If there are American retaliations tomorrow, who will take responsibility?”
MPs from other groups behind similar amendments expressed their disappointment. For MP Le Coq (LFI), the message was clear: “A majority existed to tax more multinationals that are very profitable but poorly taxed in France. The use of retaliatory measures against sectors unrelated to digital is pure and simple blackmail, and there is no justification for giving in to it.” Same story with MP Bonnet for whom “the government is activating concerns and fears instead of thinking about supporting decisions essential to our sovereignty”.
In 2019, when the GAFAM tax was first created, the US did open an investigation under Section 301. Before the French Senate, Minister of the Economy Le Maire then denounced an unprecedented American initiative: “France is a sovereign state, it sovereignly decides on its tax provisions, and it will continue”. The American threats were ultimately never carried out then.
