Trump could hit France with more tariffs in battle over taxes on big tech

Advertisement
Trump could hit France with more tariffs in battle over taxes on big tech

Trump Macron

Ludovic Marin/Reuters

French President Emmanuel Macron speaks with President Donald Trump ahead of a meeting at the Prefecture of Caen, on the sidelines of D-Day commemorations marking the 75th anniversary of the World War II Allied landings in Normandy, France, June 6, 2019.

Advertisement
  • The Trump administration is scheduled to decide next week whether to retaliate against France for a new digital services tax that hits American technology giants like Amazon and Facebook.
  • Countermeasures against the tax could include tariffs on French imports.
  • President Trump has sharply criticized steps by European allies to crack down on the technology sector.
  • Visit Business Insider's homepage for more stories.

The Trump administration is scheduled to decide next week whether to retaliate against France for a new digital services tax that hits American technology giants like Amazon and Facebook.

The Office of the US Trade Representative said in a statement it would reveal on Monday any countermeasures against President Emmanuel Macron, who finalized this summer the 3% tax on technology companies.

Under Section 301 of the Trade Act of 1974, any retaliation could include additional tariffs on French imports.

In July, US trade officials launched an investigation into whether that tax presented a threat to national security. It applies to technology companies with digital revenue of at least 750 million euros.

Advertisement

Trump has sharply criticized steps by European allies to crack down on the technology sector, arguing that it unfairly hurts businesses in the US. The US has separately prepared to broaden tariffs against the bloc as part of a long-running dispute over aircraft subsidies.

"If anybody taxes them, it should be their home Country, the USA," the president said of technology companies in July. "We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

{{}}