France and the U.S.: Heading for Trade War over a Tech Tax?

07/11/2019

|

Rachel Layne | CBS News

  • France has adopted a new tax on big internet companies like Google, Amazon and Facebook.
  • The move comes despite threats from the Trump administration that it would slap tariffs on France in retaliation.
  • The roughly 3% annual levy applies to digital companies with at least 750 euros (about $845 million) in global revenue, with 25 million euros or more in France.
  • Other countries including Australia, Austria, Italy and even the U.K. have similar proposals in the works.


France is the U.S.’s oldest ally and formal trading partner. Now it’s a pioneer in taxing the world’s biggest digital companies — most of them American.

France on Thursday adopted a tax on internet giants like Google, Amazon and Facebook despite U.S. threats to use a favorite tool of the Trump administration: tariffs. The administration says it could invoke the same 1970s-era laws it used to slap tariffs on imports from China and other trading partners, including traditional U.S. allies. 

France’s roughly 3% annual levy applies to digital companies with at least 750 euros (about $845 million) in global revenue with 25 million euros or more in France. It would affect about 30 companies in total.

[To read the original article, click here.]