U.S. President Donald Trump has escalated his confrontation with European leaders on the eve of the World Economic Forum in Davos, threatening to impose a 200% tariff on French wine and champagne.
The threat follows French President Emmanuel Macron’s refusal to join Trump’s "Board of Peace," an international body originally designed to oversee the reconstruction of Gaza that has since morphed into a vehicle for broader American foreign policy.
“Nobody wants him because he’s going to be out of office very soon,” Trump told reporters Monday, disparaging the French leader.
“I’ll put a 200% tariff on his wines and champagnes and he’ll join.”
The dispute centers on the draft charter for the Board of Peace, which would position Trump as its inaugural chairman with the power to appoint members and veto decisions.
According to documents seen by Bloomberg, the administration is soliciting "permanent" seats on the board for a $1 billion fee, with funds ostensibly directed toward Gaza’s rebuilding.
However, the charter’s mandate includes a "bold new approach to resolving global conflict," which Macron and other European officials fear is designed to circumvent the United Nations and the North Atlantic Treaty Organization (NATO).
The friction was laid bare when Trump published private text messages from Macron, in which the French president questioned Trump’s parallel demand to acquire Greenland from Denmark.
“I do not understand what you are doing on Greenland,” Macron wrote, citing concerns over sovereignty and international law.
While traditional allies like the UK, Germany, and Sweden are reportedly set to join France in declining the invitation, Trump has found more receptive audiences elsewhere.
Hungarian Prime Minister Viktor Orbán and the leaders of Vietnam have confirmed their membership.
Trump has also extended invitations to Russian President Vladimir Putin and Belarusian leader Alexander Lukashenko, a move that has caused deep consternation in Brussels.
A $1 billion contribution secures a permanent seat, while a zero-cost membership lasts only three years at the U.S. President’s discretion.
The "Board of Peace" is currently overseen by an executive committee including Secretary of State Marco Rubio, Jared Kushner, and former British Prime Minister Tony Blair.
European Union leaders are scheduled to hold an emergency summit this Thursday to finalize a response to Trump’s broader threat of a 10% levy on eight European nations over the Greenland dispute.
Macron is reportedly leading the charge for the EU to activate its Anti-Coercion Instrument (ACI), a powerful legislative tool that allows the bloc to impose sweeping restrictions on U.S. investment, banking, and digital services.
If triggered, the move could target up to €93 billion ($108 billion) in U.S. goods and services, signaling the most significant breakdown in transatlantic trade relations in decades.