No Script

Please Wait...

PrayForLebanon

 

Trump Slaps France with 25% Tariffs, Gives It 180 Days To ‘Rethink’ Taxing

Trump Slaps France with 25% Tariffs, Gives It 180 Days To ‘Rethink’ Taxing
folder_openEurope... access_time 26 days ago
starAdd to favorites

By Staff, Agencies

US President Donald Trump imposed a 25 percent import duty on French goods in an effort to scuttle the country’s digital services tax – making it clear that Paris has several months to rethink cutting into Big Tech’s profits.

The tariff would affect some $1.3 billion worth of imported French goods like handbags and cosmetics, the US Trade Representative’s office revealed on Friday. However, France has a full 180 days to “resolve the issue,” including through multilateral fora like the Organization for Economic Cooperation and Development.

The Trump administration has been threatening Paris with fiscal retaliation for months over its digital services tax – ever since France floated the idea of taxing some of the US’ most profitable corporations.

While the ultimate value of the products affected by Friday’s tariff is significantly less than the $2.4 billion in goods the administration had initially threatened in January, which included iconic French products, it runs contrary to a reported promise between Trump and French President Emmanuel Macron to postpone any potential trade war until the end of 2020.

Trump has repeatedly accused the French of “unfairly” targeting US tech firms, which include some of the wealthiest companies on the planet – trillion-dollar firms like Google parent Alphabet, Amazon, and Apple.

The French tax is intended to compensate for tech firms’ propensity to set up their corporate headquarters in countries where they pay hardly any corporate taxes while generating massive revenues in the French market. It is expected to supply some $565 million annually – if it’s allowed to take effect, that is.

The three percent levy will affect around 30 Big Tech firms, but only applies to corporations that make more than $847.5 million annually from “digital activities,” with at least $28 million of that coming from France.

Comments