President Donald Trump has responded to France’s recently passed tax on digital services, promising in a tweet that the White House would announce “a substantial reciprocal action” in the near future.
French President Emmanuel Macron signed the controversial bill into law yesterday. It will require tech companies that make €750 million in global revenue and €25 million in French revenue to pay a 3 percent tax on revenue generated by digital services in the country — which would include companies like Facebook, Google, and Amazon.
France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!
Trump’s tweet isn’t the first backlash from the White House against the bill: the Office of the United States Trade Representative has already begun an investigation at Trump’s request to look into the new tax before it was even passed. “The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies,” said US Trade Representative Robert Lighthizer at the time.
The White House had yet to reveal at the time of publication what form its “reciprocal action” would be taking.