French Finance Minister Bruno Le Maire said previously this week that France will hit back with the European Union if the US chooses to implement its trade approvals in January over recent French tax on digital services.
For those unaware, the Trump administration announced back in July that it would levy additional duties of 25 percent on French cosmetics, handbags, and other imports.
These are valued around 1.3 billion US Dollars. The changes in customs arrived after France proclaimed its digital services tax, with its implementation being on hold till January 2021. According to Le Maire, “If there are American sanctions against the French decision, which is the request of French law, we will immediately seek a riposte at the European level.”
The French Finance Minister said this in a meeting with the European Union regarding the digital services taxation. Notably, France had postponed assortment of its digital services tax till January, as international negotiations were under way to rewrite the rules of cross border digital taxation, as per report.
At the moment, about 140 countries are involved in these talks, with negotiations to last till mid-2021.
The deliberations were delayed as the US was unwilling to sign on a multidimensional deal ahead of its presidential elections.