France’s finance minister says that it will continue to carry out a plan to tax technology firms, despite a threat of tariffs on French goods from US President Donald Trump, according to Reuters.
The bill places a 3 percent tax on technology firms that earn more than €750 million ($834 million) in global revenue and €25 million in France, and would target the revenue that those companies earn in the country. According to The Washington Post, that would affect nearly 30 companies around the world, not just firms from the United States.
In response, Trump tweeted yesterday that the White Residence will “announce a substantial reciprocal action,” and that he could levy a tax towards French wine. The Office of the United States Trade Representative had also opened an investigation into the tax. The White Residence has however to announce what kind the “reciprocal action” will get, but French finance minister Bruno Le Maire is urging the US not to “mix up the two issues,” referring to Trump’s derision in the direction of its wine, and stated that the nations really should “get consensus on fair taxation of digital activities.”
