Lawrence GashFrench President Emmanuel Macron has announced an agreement between himself and his United States counterpart Donald Trump over France’s digital tax, CNBC reported on Monday, August 26.
Last month France introduced a 3% tax which primarily targeted American tech giants. Macron announced that he would gladly scrap this tax if a wider digital taxation agreement was reached internationally.
Macron has heralded this decision as a sign of progress following his hosting of the G7 at Biarritz this past weekend. However, he has already promised to scrap his national tax if an international tax were introduced, so this proclaimed progress might be limited.
Macron’s promise that companies who pay France’s tax will eventually be reimbursed once the international agreement is introduced is nonetheless a new detail.
Behind the friendly rhetoric, relations between the countries over the issue are still poor. Last week Macron stated that “global tech players do not contribute financially to the funding of the common good.”
Trump branded the French tax as “foolish”, likely because it hits tech companies regardless of where they are headquartered.
The U.S. went even further last month and opened an investigation alleging France “unfairly targets American companies” and threatening tariffs.
The President of the European Council Donald Tusk vowed at the G7 that the EU would “respond in kind” to any U.S. actions.
