US government is considering penalties against France

Robert Lighthizer

The US Trade Representative has assessed France's digital tax in a report.

(Photo: Reuters)

Washington The Washington government is considering raising tariffs on French imports in response to a new French digital tax. "The French tax is not compatible with the prevailing principles of international taxation policy and is unusually burdensome for affected US companies," said US Trade Representative Robert Lighthizer on Monday.

According to a study, the French digital tax would hurt mainly Google and Facebook and Apple and Amazon, said Lighthizer. Lighthizer also said it will also examine whether similar investigations into the digital service taxes of Austria, Italy and Turkey will be initiated.

In a report based on months of research, the French digital tax was described as "discriminatory". It proposes punitive tariffs on French products. Such import fees of up to 100 percent could be imposed on imports worth around $ 2.4 billion, as explained by the Office of the US Trade Representative in Washington. This could include champagne, certain cheeses, yogurt, butter and handbags, it was said.

The actual imposition of duties is to be decided after hearings in January. The tax discriminates against American companies like Amazon. Google and Facebook, the report said. President Donald Trump had already threatened punitive tariffs on French wines in the summer if France was to cling to its national unilateralism.

More: The Minister of Finance says he is working on an international plan to tax digital companies. Already in January, there could be something concrete.

. (TagsToTranslate) France (t) United States (t) import duties (t) digital control. Punitive tariffs (t) protectionism (t) foreign trade policy (t) foreign trade (t) internet (t) business taxation (t) foreign trade with land (t) internet companies (t) Amazon (t) Facebook (t) Google


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