The White House slammed France on Friday for its “foolishness” in imposing a tax on tech companies, saying it will disproportionately affect U.S. juggernauts.
President Trump said he might slap tariffs on French wine in response.”Wrong thing to do, they should not have done it,” Mr. Trump said from the Oval Office.
French lawmakers passed the 3% levy because they feel companies make big profits on their shores, yet duck their fair share of tax by setting up their headquarters in low-tax countries elsewhere in the European Union.
The tax on revenue earned in France would impact dozens of companies from around the world, though U.S. behemoths like Facebook, Google or Amazon would be notable targets.
The Trump administration says if anyone taxes those tech companies, it should be the U.S. itself.
“The United States is extremely disappointed by France’s decision to adopt a digital services tax at the expense of U.S. companies and workers,” White House Deputy Press Secretary Judd Deere said. “France’s unilateral measure appears to target innovative U.S. technology firms that provide services in distinct sectors of the economy.”
Already, the Trump administration is investigating whether the tax is an unfair trade practice.
Mr. Trump said he’s eyeing a levy on French wines to bolster domestic competitors.
“I’ve always liked American wines better than French wines, even though I don’t drink wine. I just like the way they look,” he told White House reporters. “American wines are great.”
Mr. Trump’s son, Eric, is president of the Trump Winery in Virginia.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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