The punitive taxes on French-made goods are retaliation for France imposing a digital service tax in July, which the US believes to be discriminatory against tech giants like Google, Facebook, Apple, and Amazon. Agnes Pannier-Runacher, France’s junior economy minister, said Paris should not reverse its taxation rules because they make economic sense.

“We need to be pugnacious on the subject,” she told Sud Radio.

French Finance Minister Bruno Le Maire called the tariff threat “unacceptable”, especially since they target “one of [America’s] main allies and Europe in general.”

“In case of new American sanctions, the European Union would be ready to riposte,” he told Radio Classique.

The French tax is meant to address the situation in which large foreign firms can generate revenue in the French market and declare it as profit in whatever jurisdiction their headquarters are located in, paying little to no corporate taxes. The three-percent levy imposed retroactively is expected to contribute about €400 million ($443 million) this year.

Like this story? Share it with a friend!


Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Banks enjoy strong earnings, but rate cut could be spoiler

Federal Reserve Board Chairman Jerome Powell speaks during a press conference in Washington, DC, file photo. [Photo/VCG] While the US’ biggest banks are reporting solid earnings this week, the sector could face some difficulty if the Federal Reserve cuts interest…

‘I grew up listening to Rihanna. Now she’s listening to me’

Shenseea is midway through a European tour, staying in a budget hotel at the side of a dual carriageway in London. Despite her surroundings, she exudes A-list energy. In the lift, the Jamaica-born 23-year-old checks her face in the mirror…

Court says Tesla can clear trees to build car factory

A German court has ruled that clearing of trees from the site of Tesla’s first electric car factory in Europe can go ahead, days after it issued an injunction temporarily halting the preparatory work. The top administrative court in the…

China confirms human-to-human transmission of new coronavirus

Human-to-human transmission of a new coronavirus strain has been confirmed in China, fueling fears of a major outbreak of the SARS-like virus as millions travel for the Lunar New Year holiday. Zhong Nanshan, head of the National Health Commission, said…