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Trump Threatened To Retaliate For French Digital Tax Before The G7 Summit

Before departing to France for a group of economically advanced G7 countries that will start on Saturday night at Biarritz, US President Donald Trump once again criticized the recently approved French special tax for large technology companies. On Saturday, he threatened again that, in response, the United States could impose customs duties on French wine. Reuters informed about this.

“It’s very unfair. If they do, we’ll tax their wine or do something else, “said the American president shortly before traveling to the south-French Biarritz. He himself is not a “big fan” of technology companies, but it is American companies. “And honestly: I do not want France… Our societies, “he added.

In July, France approved the Digital Tax Act, referred to as GAFA, as it touches, among other things, the technology giants Google, Amazon, Facebook, and Apple. However, the three-percent tax on revenues from services provided in France concerns all companies with revenues above EUR 25 million in that country (roughly CZK 647 million) and worldwide above 750 million (over CZK 19 billion). Valid retrospectively from the beginning of this year.

Washington sees a digital tax on discrimination against companies based in the United States. According to US media, Trump in Biarritz, with French President Emmanuel Macron, intends to negotiate digital tax. The relationship with Macron’s head of the White House marked good before departing to France.

The other Member States of the European Union, including Austria, Italy, Spain, and Britain, have also announced plans to introduce the digital tax. In the Czech Republic, a proposal for a seven-percent digital tax is now in the comment procedure.

G7 Summit
The G7 summit, which will last until the 26th of August. This year, the seven most advanced economies in the world will act to reduce inequality. However, negotiations are expected to be marked by disputes over trade issues, the nuclear agreement with Iran from which the US withdrew last year, or climate change.

A few days ago, Trump and Macron agreed that Russia should return to the G7 group. But, as Paris points out, before returning to the G8 format, there is a need for progress in the conflict in Ukraine.

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