THE WHAT? France has warned that it will implore the European Union to respond in kind to any trade sanctions ushered in by the US in the two countries’ ongoing spat over the French digital services tax, according to a report published by Reuters.
THE DETAILS The US is planning to levy a 25 percent tax on French cosmetics, handbags and other imports from January 2021.
“If there are American sanctions against the French decision, which is the application of French law, we will immediately seek a riposte at the European level,” French Finance Minister Bruno Le Maire told journalists last week, per Reuters.
THE WHY? Some 140 countries are engaged in talks over cross-border taxation rules for the digital era but with Washington stalling pending the presidential election last month, France has forged ahead with its rules until an international agreement can be reached.