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France is Trump’s new target as he broadens the scope of his global trade war again

Franc_Trump Target
  • The US has set the stage to retaliate against a French tax on Facebook, Google, Amazon, and other American technology giants by implementing punishing tariffs.
  • That could open another front in a global trade dispute that has sprawled over the past year.
  • Trump has separately threatened to slap a tax on auto imports from the European Union and accused its central bank of currency manipulation.
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The US has set the stage to retaliate against a French tax on Facebook, Google, Amazon, and other American technology giants by implementing punishing tariffs. Such a move could open another front in a global trade dispute that has sprawled over the past year.

Treasury Secretary Steven Mnuchin plans to push back against the proposed digital tax at the G7 meeting this week, according to The Associated Press. France moved to impose it after the European Union failed to take universal action against technology companies, which have been accused of finding ways to avoid corporate tax.

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The US this month opened an investigation into the proposed 3% levy — which cleared the French Parliament last week and could be signed into law in the coming days — through Section 301 of the US Trade Act, meaning it could result in tariffs. That was the same provision the Trump administration used when it launched an inquiry that found that China had engaged in unfair trade practices.

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