The United States announced the introduction of 25 percent duties on goods from France of 1.3 billion dollars due to the digital tax. They will come into force on January 6, 2021, reports Agence France-Presse, citing a statement from the US trade mission.
According to the US trade representative, digital tax unfairly affects American companies that engage in digital technologies. However, the US duties will not take effect until January 6, 2021, while negotiations continue.
It is reported that duties will be imposed on French cosmetic products and bags.
The issue of digital tax has become a point of contention between the US and France. Last July, the French Parliament passed a law on taxing the services of major digital companies such as Amazon, Apple, Facebook, and Google. This law has drawn sharp criticism from the United States. President Donald Trump has said that he may impose a tax on French wine as a retaliatory measure.
In January 2020, French Economy and Finance Minister Bruno Le Maire said that France and the US had established a “common framework” regarding the digital tax. He noted that Paris and Washington have yet to settle on specific points related to taxation. At the same time, Le Maire then confirmed that by the “General framework,” France will postpone the collection of digital tax until December 2020, and the US will refuse to impose sanctions duties in response. Earlier, French President Emmanuel Macron announced this decision.