The Trump administration threatens to impose additional duties, up to 100%, on the equivalent of $ 2.4 billion of French products in response to the introduction in France of a tax on US digital giants. Among the products that could be surcharged are many cheeses including Roquefort, yogurt, sparkling wine and cosmetics such as soap and makeup or handbags.
This announcement follows an investigation opened last July by the US Trade Representative (USTR) concluding that the French legislation called "Gafa" (Google, Apple, Facebook and Amazon) is damaging to US companies. The USTR proposal, which is yet to be endorsed by US President Donald Trump, risks intensifying friction with the European Union. These new threats are unveiled the day before a meeting between Donald Trump and French President Emmanuel Macron to be held Tuesday in London, as part of the NATO summit.
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Taxation of Gafa up to 3% of turnover in France
As is customary, the USTR has also announced a period of public consultations. The Trump administration is also planning to open an investigation against Austria, Italy and Turkey to determine whether digital taxes are threatening US companies. The Gafa tax imposes these companies up to 3% of the turnover achieved in France, especially on targeted online advertising, the sale of data for advertising purposes and the linking of Internet users by the platforms. This solution is intended to be only temporary pending the outcome of international negotiations.