France Urges US Not To Impose Sanctions In Response To Digital Tax On Amazon, Google

French Finance Minister Bruno Le Maire said Monday that France would retaliate if the U.S. imposes sanctions over a French digital tax on companies such as Amazon and Google.

“If the Americans decide to go ahead and impose sanctions against the digital tax ... in this case we would retaliate,” Le Maire told the France Inter radio service.

President Trump has claimed that the tax discriminates against American tech companies, and has threatened to slap tariffs on $2.4 billion of French goods such as wine and handbags.

“If there were to be sanctions, and it is a possibility that we will take sanctions, we would immediately contact the WTO (World Trade Organization),” Le Maire continued

Le Maire has also contacted U.S. Special Trade Representative Robert Lighthizer to convince the U.S. to not slap tariffs on French goods. “I insist that our tax is not discriminatory against U.S. companies," Le Maire wrote in a letter.

The French government introduced a digital tax proposal in March, which would impose a 3% tax on digital services firms making more than $27.86 million in French revenue and $830 million worldwide. This tax would apply to American big tech companies such as Amazon, Google and Facebook.

In July, the proposal was passed by the Senate of the French parliament and signed by French President Emmanuel Macron. Macron has said the tax was not specifically aimed at U.S. tech companies but U.S. Commerce Secretary Wilbur Ross has refuted that statement.

“It’s hard to say that it wasn’t designed as an anti-American thing,” Ross told CNBC in December. “The criteria, whether designed deliberately or not, essentially include only American companies.” Ross said that the tax stems from French “jealousy” towards the thriving U.S. tech sector.

Other European countries have implemented their own digital tax plans. Italy has levied a digital tax of 3% on big tech companies, while the U.K. has proposed a 2% tax.