France is about to start taxing American tech companies an extra 3 percent on sales generated in France. The French government’s argument is that companies like Microsoft and Facebook pay no taxes because they’re located in America, despite generating revenue from sales in France. The Trump administration has ordered an inquiry into the matter, which may result in retaliatory tariffs. Trade representative Robert Lighthizer said he was investigating to see if the new tax “is discriminatory or unreasonable and burdens or restricts United States commerce.” This new tax only applies to companies worth more than $850 million who have made at least $28 million of that money in France. It will be applied in early 2019 and is expected to generate around $565 million per year.