France’s Senate approved a tax on the revenues of tech giants like Google, Amazon and Facebook on Thursday, defying a warning from the President Donald Trump administration that it “unfairly targets American companies.”
On Wednesday, Trump ordered an investigation into France’s planned “digital tax” on tech companies. The 3% tax would apply to the French revenues of roughly 30 major companies, mostly from the US.
“France is sovereign, and France decides its own tax rules. And this will continue to be the case,” France’s Finance Minister Bruno Le Maire said in a statement.
He added the US and France could find agreements, rather than using threats, to reach a deal on the “fair taxation” of internet giants.
In a statement Wednesday, US Trade Representative Robert Lighthizer said the US will investigate whether the French tax “is discriminatory or unreasonable and burdens or restricts United States commerce.” The investigation could lead to the US imposing tariffs or trade restrictions on French goods, potentially escalating the global fight over trade.
Full Content: CNBC