The United States on Monday (December 2nd) threatened to overtax $ 2.4 billion in French products in retaliation for Paris's tax on digital businesses, dubbed the "Gafa tax," which unfairly penalizes American corporations in the eyes of Washington.
The Office of the United States Trade Representative (USTR) has established a list of products including champagne, handbags, make-up products, yogurt or cheese, which may be subject to additional duties of up to 100% .
The Trump administration therefore seems to be sparing the traditional wine, one of the most iconic tricolor export products, already already under US retaliation in another commercial dispute over European subsidies to Airbus.
"Abnormal burden for American companies"
The USTR had opened an investigation this summer under Section 301 of the Trade Act of 1974, which aims to determine the fairness of commercial practices against US companies. In his conclusions, he considers that the French tax, adopted last July, is "not in conformity with the principles of international fiscal policy and constitutes an abnormal burden for the affected American companies".
The USTR proposal, which is yet to receive the approval of US President Donald Trump, risks intensifying friction with the European Union and France in particular.
Monday, well before the announcement of this proposal, the French Minister of the Economy Bruno Le Maire had warned that France would never give up its tax on the giants of the tech, and reproached the United States of not more want a big international agreement on digital taxation.
Meeting between Trump and Macron
These new threats are also unveiled the day before a meeting between Donald Trump and French President Emmanuel Macron during the NATO summit.
The Trump administration is also planning to open an investigation against Austria, Italy and Turkey to determine if their taxes are threatening US companies.
Targeting in particular the digital giants of Google, Apple, Facebook and Amazon - hence the nickname "Gafa tax" - the French tax applies to companies generating a turnover on their digital activities of 750 million euros worldwide and more than 25 million euros on French soil.
With AFP and Reuters