France to implement digital tax despite Trump's threat

France to implement digital tax despite Trump's threat

France to implement digital tax despite Trump's threat

President Donald Trump threatened France with "substantial reciprocal action" over plans for a new digital tax that affects USA technology companies.

"If anybody taxes them, it should be their home Country, the United States of America", U.S. President Donald Trump tweeted on Friday.

Trump blasted Macron's "foolishness" for pressing ahead with the French levy and warned his administration would announce "substantial reciprocal action".

But neither Trump nor French President Emmanuel Macron appears ready to back down.

The White House announced earlier in July that it was opening an investigation into whether an imminent French tax on technology giants "unfairly targets American companies".

"I've always liked American wines better than French wines - even though I don't drink wine". Sent via Twitter for iPhone.

Trump added. "American wines are great, and they didn't do the right thing when they start taxing our companies".

Trump said last month that he would end preferential trade treatment for India, which would result in United States tariffs on up to $5.6 billion of imports from India.

The Trump Administration has consistently stated that it will not sit idly by and tolerate discrimination against US -based firms.

French Economy Minister Bruno Le Maire indicated that Paris was not intimidated.

Facebook CEO Mark Zuckerberg testifies before a House Energy and Commerce Committee hearing regarding the company's use and protection of user data on Capitol Hill in Washington, U.S., April 11, 2018.

Macron this week signed the digital services tax, a 3 percent tax that targets companies worth at least 750 million euros ($834 million) globally and 25 million euros in France.

France exported more than $3 billion in wine to the U.S. last year, making the U.S. France's biggest wine export market.

The French government says the tax will end if a similar measure is agreed internationally.

"This is not good news for business and it's not good news for wine", producer Maxime Saint Martin told news outlet France TV Info on Saturday.

"They shouldn't have done this", Trump said.

"I want to tell our American friends that this should be an incentive for them to accelerate even more our work to find an agreement on the worldwide taxation of digital services", he said.

The justices' decision to lift the freeze on the money allows Donald Trump to make progress on a major 2016 campaign promise heading into his race for a second term. France's tax, and Trump's response, threaten to further strain trans-Atlantic ties as the US and European Union prepare to negotiate a limited trade agreement on industrial goods.

The federation urged French and American authorities to pursue dialogue on the tax issue, expressing hope "that they can quickly find a path to follow to prevent these threats from materializing".

According to a BBC report, more than 30 companies will be taxed under the new law.

An EU levy would require consensus among members, but Ireland, the Czech Republic, Sweden and Finland raised objections.

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