A new trans-Atlantic trade showdown is brewing as President Donald Trump threatens to impose 100% tariffs on French wine unless France abandons its digital tax on U.S. technology companies. 

Trump told the New York Post he warned French President Emmanuel Macron that the 3% tech levy could come at a steep cost, putting billions of dollars in French wine exports to the American market at risk. The U.S. market, which generates more than $2 billion annually for French winemakers, accounts for roughly one-fifth of the industry’s worldwide sales.