French Minister of Economics and Finance Bruno Le Mer has threatened the United States with sanctions if the Americans impose duties on French goods.

“The US administration claims that our taxes discriminate against them. I categorically deny this and have already sent a letter to Robert Lightheiser, US Trade Representative, ”he said in an interview with Le Journal du Dimanche.

The dispute between the two countries was caused by the introduction of a new tax in France last year. It concerns the largest companies providing digital services, and makes up 3% of their total turnover in French territory. Many of these companies, in particular Google, Apple, Facebook and Amazon, are American, so in Washington these actions were considered hostile. In early December, US President Donald Trump, at a meeting with his French counterpart Emmanuel Macron, urged him to abolish the "digital" tax.

In the same month, the United States Trade Mission issued a statement stating that France could be punished for its actions. In particular, Americans are considering the possibility of introducing duties of up to 100% on a group of French goods whose imports are estimated at $ 2.4 billion.

Last year, Trump repeatedly promised to impose sanctions against France because of the "digital" tax. So, he hinted that he was ready to impose increased duties on French wine.

Bruno Le Mer in his interview stressed that France is ready for negotiations with the United States on tax issues. The dialogue between the two countries, as they believe in Paris, should go under the auspices of the Organization for Economic Cooperation and Development (OECD). It includes both France and the United States. But Paris will not succumb to pressure, the minister assures.

“We want to avoid a trade war, but we and our European partners will be ready for retaliatory measures if we are subjected to sanctions that we consider unacceptable, unfriendly and illegal,” said Bruno Le Mer.

It should be noted that the threat of Washington did not impress not only Paris, but also Rome. From January 1, Italy introduced its analogue of the "digital" tax.

Political context

The interview of the French minister appeared against the backdrop of the aggravation of the situation around Iran caused by the death of the General of the Islamic Revolutionary Guard Corps Kassem Suleimani as a result of an American air strike in Baghdad. According to the Kremlin press service, immediately after this event, on the initiative of the French side, a telephone conversation took place between Vladimir Putin and Macron. Both sides expressed concern about the killing of Suleimani.

“It was stated that this action could seriously aggravate the situation in the region,” the Kremlin’s press service reports.

  • Google logo on the facade of an office in New York
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  • © Brendan McDermid

In an interview with RTL, French Secretary of State for European Affairs at the French Foreign Ministry, Amelie de Monschalen, noted that the escalation of tension in the region would have consequences for the international coalition against IG * and the issue of non-proliferation of nuclear weapons. She emphasized that it was in the interests of France to make the situation in this region less tense.

France’s reaction to the assassination of Suleimani is contrary to the position of its American ally. Donald Trump calls the Iranian general a terrorist and claims that the Americans allegedly prevented the destabilization of the situation and many violent actions with their actions.

“Given this context, Bruno Le Mer’s statement looks particularly harsh,” said Yuri Rubinsky, head of the Center for French Studies at the Institute of Europe, Russian Academy of Sciences, in an interview with RT.

The expert notes that France already does not like the economic policy of the Trump administration, which, as the history of the digital tax shows, is contrary to the interests of the EU countries. The aggravation of relations with Iran provoked by the USA is also absolutely unprofitable for the French business community, which has invested a lot of money in the Iranian economy. In addition, it strikes at the prestige of French diplomacy, Rubinsky believes.

“The murder of Suleymani is a personal humiliation for Macron. It was the French president who tried to mediate between the United States and Iran. He tried to arrange a meeting between Trump and Iranian President Hassan Rouhani, tried to save the "nuclear deal." Now, after the death of Suleimani, all these efforts, which previously did not give much result, are unpromising, ”the analyst believes.

In these conditions, France decided to demonstrate to the United States its “dissatisfaction with the White House’s foreign policy line,” Rubinsky noted.

Confrontation Price

Nevertheless, analysts do not believe that in 2020 it will come to a trade war between Paris and Washington, which Bruno le Mayor spoke about.

“Here we need to raise the question of how far Trump can go in escalating tensions in the Middle East. If he does not cross a certain line, then the matter will be limited to the level of opposition that is now, that is, formidable statements. Europeans will move from threats to deeds only if their interests are hit hard. I think that Trump will not drive her European allies into a hopeless situation, ”said Alexander Tevdoi-Burmuli, associate professor at the Moscow State Institute of International Relations, in an interview with RT.

  • French wine
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  • © Regis Duvignau

At the same time, he emphasized that "a trade war between Paris and Washington is impossible."

“France is a member of the EU common market. Consequently, no separate French sanctions against any country are possible. There can only be sanctions throughout the EU. And France, as a member of the European Union, can only offer them, ”said Tevdoi-Burmuli.

Rubinsky shares this point of view. According to him, a full-fledged trade war between the EU and the United States is unlikely, since they are too closely interconnected in the economic, political and military spheres. Rubinsky draws attention to the fact that the United States, despite the anti-Chinese rhetoric of the White House, did not even begin a full-fledged trade war even with the PRC. In his opinion, between Washington and Brussels only a peculiar “war of nerves” is possible, where much will depend on whether Europeans can demonstrate unity.

EU consolidation in opposition to US actions is hindered by several factors, Rubinsky believes. Firstly, the union of France and Germany, which forms the basis of the economic power of the European Union, is now weakened due to the alleged resignation of German Chancellor Angela Merkel from her post. Secondly, the consequences of Britain leaving the EU are not clear. Thirdly, the countries of Eastern and Central Europe are closely connected with the US defense guarantees.

However, Rubinsky warns against underestimating the capabilities of the European Union.

“Those who put an end to the EU, representing it as an incompetent organization, and Europeans as toys in the wrong hands, make a mistake. The European Union has proved that it is a strong foreign policy player, capable of defending its interests. Another thing is that, of course, they do not want confrontations, especially with their closest ally, either in Paris or in Brussels. They would agree to mutually beneficial agreements, ”concludes Rubinsky.

* “Islamic State” (IG) - the organization was recognized as terrorist by decision of the Supreme Court of the Russian Federation of December 29, 2014.