French official local time 3, said the United States proposed to impose tariffs on 2.4 billion U.S. dollars of French products “unacceptable”, and said France and the European Union will be prepared to fight back against the U.S. tariff threat. U.S. Trade Representative Lethchie Said 2, the U.S. “301” survey showed that the French digital services tax “discriminates” U.S. Internet companies, so proposed the U.S. government to the value of $2.4 billion worth of French products to impose tariffs of up to 100 percent. These French products include champagne, handbags, cheese, etc.
French Economy and Finance Minister Michel Le Maire responded Wednesday that the U.S. plan to impose tariffs on French products is “unacceptable.” He said the EU would be prepared to take measures to counter french products if they were subject to tariffs imposed by the United States.
France’s secretary of state for economy and finance, Rona Schell, also said France would firmly respond to the U.S. tariff threat and stressed that France would not abandon plans to impose a digital service tax. She believes that, from an economic point of view, a tax on digital services in France is justified.
France has recently sought to push for a tax on digital services. France’s House and Senate have previously approved separate bills to impose a tax on digital services to multinational Internet companies. Under the relevant legislation, companies with annual operating income of at least 750 million euros for global digital businesses and more than 25 million euros a year in France will be subject to a 3% digital service tax. Internet giants such as Google, Amazon and Facebook could face tax charges.
U.S. President Donald Trump threatened to impose tariffs on French wine in July, calling it a “mistake” to impose a digital service tax on U.S. companies.
Shares of several French luxury goods makers fell on Wednesday, driven by the threat of U.S. tariffs. Shares of French luxury goods giant Luwesan fell 1.5 percent at the open on Wednesday, while shares of French luxury brand Hermes fell nearly 2 percent at the open.