‘A CLEAR SIGNAL’

U.S. Proposes Tariffs on $2.4B Worth of French Champagne, Cheese, and Handbags Over Tech Tax

The U.S. says France’s new digital services tax unfairly targets American tech companies.

The U.S. has proposed tariffs of up to 100 percent on about $2.4 billion worth of French imports in response to France’s new digital services tax, which would harm U.S. tech companies like Google, Facebook, and Amazon. United States Trade Representative Robert Lighthizer said in a statement that the new tax, which France approved in July, unfairly targets tech companies. The decision “sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on U.S. companies,” Lighthizer said. The items that could face tariffs include champagne, cheese, makeup, and handbags. Lighthizer said the agency is also looking into opening investigations into similar digital taxes by Austria, Italy, and Turkey. The announcement came hours after President Trump announced a slew of other tariffs on steel and aluminum from Argentina and Brazil.