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French Wine Vs US Tech Prowess: New Trump-Macron Standoff
AppleMagazine
|August 02, 2019
France is pushing ahead with a landmark tax on tech companies like Google and Facebook despite U.S. President Donald Trump’s threats of retaliatory tariffs on French wine.
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That’s rattling French vintners, who sold 1.6 billion euros ($1.78 billion) worth of wine last year to American consumers. But neither Trump nor French President Emmanuel Macron appears ready to back down.
After Trump slammed the “foolishness” of the tax in a tweet last Friday and promised reciprocal action, French Finance Minister Bruno Le Maire said France will implement it anyway.
He insisted that the measure doesn’t target American companies, and that “fair and effective taxation on digital activities” is of universal concern.
He said France’s tax is meant as a temporary measure pending negotiations on an international deal that France wants to work out “hand in hand with our American friends.”
The 3% tax that went into force this week mainly concerns companies that use consumer data to sell online advertising.
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