Via RT

US President Donald Trump has promised to take “substantial reciprocal action” against a proposed French “digital tax” if it seeks to target any American technology firm.

The president took to Twitter on Friday afternoon with a threat of retaliation, following the recent passage of a law in France which would impose a new three-percent tax on tech firms such as Facebook and Amazon.

President Trump insisted that if any country should tax American tech firms, “it should be their home Country, the USA.” He then took a potshot at his French counterpart and one-time best pal Emmanuel Macron, calling out his “foolishness” and then denigrating one of France’s most cherished exports.

“I’ve always said American wine is better than French wine!” Trump tweeted.

The new tax, signed into law on Wednesday, will affect companies with at least $834 million (€750 million) in global revenues, or those that earned over $27 million (€25 million) from “digital activities,” such as advertising, in France.

Also on
France passes law taxing tech giants despite US anger

After the passage of the bill earlier this week, Trump warned the tax “unfairly targets American companies,” and ordered an investigation into the new measure, which, according to US Trade Representative Robert Lighthizer, will determine whether it “is discriminatory or unreasonable and burdens or restricts United States commerce.”

White House spokesman Judd Deere on Friday announced the administration was “looking at all policy tools” available to counter the new tax.

The French Minister of Economy and Finance Bruno Le May responded to President Trump’s Friday tweets, stating Paris would like to come to an agreement on the issue, but insisted “in the meantime, France intends to implement its national decisions.”

“The general taxation of digital activities is a problem that concerns us all,” Le May said, according to the AFP news agency. “We want to reach an agreement on this issue within the Group of Seven (G7) and the Organization for Economic Cooperation and Development (OECD).”

Like this story? Share it with a friend!

READ ALSO  Moderna to apply for US & European emergency authorization as Covid-19 vaccine shows 94% efficacy in final analysis