France will continue with its technology tax amidst tariff threat from US

Growing froidure Donald Trump is angry over French digital tax
Credit
AFP

French Finance Minister Bruno Le Maire says France will proceed with taxing revenues of big technology firms and is urging the U.S. not to bring trade tariffs into the debate on how to fairly raise levies on digital services. The French tax and Trump's response threaten to further strain transatlantic ties as the United States and European Union prepare to negotiate a limited trade agreement on industrial goods.

Later in the Oval Office, Trump told reporters the tax decision was wrong and he threatened the key French export.

"The President spoke by telephone with President Macron of France today to discuss a number of issues, including addressing the continued threat posed by Iran to commercial shipping traffic in the Strait of Hormuz, France's decision to adopt a digital services tax, and the upcoming G7 Summit", Deere said in a readout of the call on Friday.

President Trump also menaced to take shortly "a substantial reciprocal action" and tax French wines in retaliation for what he considered French President Emmanuel Macron's "foolishness".

France just put a digital tax on our great American technology companies.

In response, the U.S. Trade Representative (USTR) initiated an investigation on July 10 against France under Section 301 of the Trade Act of 1974, accusing the French government of "unfairly targeting the tax at certain U.S. -based technology companies". "I just like the way they look".


"President Trump has spent his career hiding behind lawsuits, but, as New York's chief law enforcement officer, I can assure him that no one is above the law - not even the president of the United States", James said in a statement on Tuesday.

France has said it would withdraw the tax if an global agreement was reached, and Paris hopes to include all OECD countries by the end of 2020.

The EU is the biggest importer of U.S. wines.

India, the world's biggest buyer of USA almonds, on June 21, 2018 raised import duties on the nuts by 20% and increased tariffs on a range of other farm products and U.S. iron and steel, in retaliation for United States tariffs on Indian steel.

It's a 3% tax that will affect companies like Facebook and Google that draw about $28 million or more in revenue from digital services in France. "We tax our companies, they don't tax our companies", said Trump. However, American wine exports are dwarfed in volume by the far bigger output from France, Italy and Spain.

Because they're often domiciled in other countries - including low-tax jurisdictions such as Ireland or Bermuda - and shift money seamlessly across borders, companies that sell online can easily avoid paying taxes in nations where they nevertheless make significant sales.

Related:

Comments

Latest news

Ryanair 1Q 2020 net profit down 21% on lower fares, higher costs
Ryanair (RYA.I) earlier this month halved its growth targets for the next year because of delays in deliveries of the 737 MAX. Ryanair also saw an 11 per cent increase in passenger numbers, carrying 42 million guests in the first three months.

Hacker gets access to 100 million Capital One credit card applications
The vulnerability was reported to the company by a security researcher on July 17, and the breach was discovered on July 19. About 140,000 social security numbers and 80,000 linked bank account numbers were compromised, Capital One said.

Rampant Rahm takes first-round lead at WGC-St. Jude Invitational
Rahm is seeking his second title of 2019 after teaming up with Ryan Palmer to win the Zurich Classic of New Orleans team competition.

Coco Gauff secures qualifying spot in Citi Open
My parents raised me well. "I've gotten a lot of attention since that first (Wimbledon) match and I've mearned how to handle it". On Sunday, she defeated Japan's Hiroko Kuwata 6-1, 6-2 in the final round to enter the main draw.

London’s Medical Startups Challenge Welcomes a New Judge, Max Polyakov
MBios is a joint project of Innovation House and the Ukrainian Medical Association of the United Kingdom (UMAUK). Such kind of challenges provides the participants with an opportunity to present their projects to the world.

Other news