Business

Macron and Trump declare a truce in digital tax dispute

Reuters

French President Emmanuel Macron said Monday he had a “great discussion” with U.S. President Donald Trump over a digital tax planned by Paris and said the two countries will work together to avoid a rise in tariffs.

Macron and Trump agreed to hold off on a potential tariffs war until the end of the year while continuing to hold negotiations at the OECD on the digital tax, a French diplomatic source said.

“They agreed to give a chance to negotiations until the end of the year,” the source said. “During that time period, there won’t be successive tariffs.”

France decided in July to apply a 3 percent levy on revenue from digital services earned in France by firms with revenue of more than €25 million ($28 million) in France and €750 million worldwide. Washington has threatened to impose taxes on French products in response.

French authorities have repeatedly said that any international agreement on digital taxation reached within the OECD would immediately supersede the French tax.

The White House did not immediately respond to a request for comment.

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