Presidents Trump and Macron declare a truce on digital tax dispute

Presidents Trump and Macron shake hands during their meeting at Winfield House, London on Dec. 3. Photographer: Ludovic Marin/AFP via Getty Images
Donald Trump and Emmanuel Macron shake hands during their meeting at Winfield House, London on Dec. 3. Photographer: Ludovic Marin/AFP via Getty Images
Presidents Donald Trump and Emmanuel Macron have declared a truce on a digital tax dispute that was ratcheting up between France and the U.S.

In July 2019, the French senate has approved a digital tax scheme that targeted any digital company, including Apple, with revenue of more than $750 million, of which at least $28 million is generated in France. Approximately 30 different companies, including Apple, Alphabet, Facebook, Microsoft, and Amazon were likely to be impacted by the tax, which requires they pay a 3 percent tax on sales made in France.

In December, the U.S. government on Monday said it was considering slapping punitive duties of up to 100% on $2.4 billion in imports from France of Champagne, handbags, cheese and other products, after concluding that France’s new digital services tax would harm U.S. tech companies.

The truce means neither side will impose punitive tariffs this year, a French diplomat said.

Bloomberg News:

“Great discussion with @realDonaldTrump on digital tax,” Macron said in a tweet. “We will work together on a good agreement to avoid tariff escalation.” The Bloomberg dollar index pared gains to trade little changed and the euro undid an earlier decline after the news.

The two countries will continue negotiations along with their European partners until the end of 2020 in order to agree a global framework that ensures tech companies pay an appropriate amount of tax, the diplomat said… The agreement also carries the two sides beyond this year’s presidential vote in the U.S., where Trump will be seeking reelection.

MacDailyNews Take: There is a thin line between compromise and capitulation. Regardless of how you characterize this development, it’s far better to see the U.S. and France working together than opposing each other.

12 Comments

          1. applecynic, if you recent bizarre posts are from an impostor, then I apologize for my strongly worded rebukes to them. MDN has always been poor at controlling the bad behavior on this forum. For instance, MDN refuses to limit posts to registered users. That would solve a lot of problems.

    1. No! Macron pleaded for a face saving scenario.
      This a wonderful example of France overplaying their hand and being shoved back and told not bother us for another 12 months.
      To this we can all have a champaign toast.

  1. Trump at the WEF in short: “Let’s destroy the world and make alto of money”.
    And some dream to give that guy another chance to murder humanity!
    Hey guys: all these $ you’ll winn won’t be of any help on a dead planet:

  2. If I’m a troll, I guess you’re a troll that’s saying nothing as well, except I, with an injection of a little humor, responded to a troller “saying nothing,” but insults, as well.

    Let me guess, Alumx’s trolling suited you, b/c the criticism was directed upon a “worthy” subject?

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