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Tariffs on French wines and renewed tax scrutiny raise macro policy risk for France equities, potentially weighing on EWQ components, particularly luxury and consumer names, until clarity from the G7 diminishes uncertainty.
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Trump’s warning that France must drop its 3% digital services tax or face 100% tariffs on French wines introduces fresh risk for EWQ via heightened US-France trade tension. The G7 summit in Evian-les-Bains amplifies the likelihood of policy shifts, while a possible reopening of a probe into the French levy could add volatility to European equities. The catalyst is the summit and any concrete moves on the levy.
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