France will continue with its technology tax amidst tariff threat from US

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french flag (flickr)

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 toReuters.

The country’s senate passed the controversial bill earlier this month, and it was signed into law by President Emmanuel Macron this week. 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 toThe 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 House will “announce a substantial reciprocal action,” and that he could levy a tax against French wine. The Office of the United States Trade Representative had also opened an investigation into the tax. The White House has yet to announce what form the “reciprocal action” will take, but French finance minister Bruno Le Maire is urging the US not to “mix up the two issues,” referring to Trump’s derision towards its wine, and said that the countries should “get consensus on fair taxation of digital activities.”

[“source=theverge”]