The United States has once again threatened to impose additional import duties on certain French products. The additional taxes (up to 100 %) are a retaliation for the digital tax that France has introduced.
Last summer, the French Parliament approved the digital tax, which retroactively introduced that tax on 1 January. Companies that generate more than 750 million euros of digital income (advertising, commissions,...) worldwide, of which more than 25 million euros in France, are now subject to a sales tax of 3 %.
American companies are particularly affected by the new tax (especially companies like Amazon, Facebook and Google), however also Chinese, German, British, and one French company are taxed more. In total, some thirty companies are involved.
According to the American trade representative, the digital tax discriminates American companies and therefore allows the United States to impose up to 100 % of additional import duties on a number of French products, including cheeses, yogurt, sparkling wine, soap, and make-up. The USTR calls the French digital tax unreasonable, discriminatory and restrictive on United States commerce", Belgian newspaper De Standaard quotes the service.
It is not the first time that the United States has threatened to impose sanctions on France. President Donald Trump had already made it clear that he would levy additional taxes on French wines and other products.