The U.S. and France have reached a deal on a French tax of large American internet companies, French President Emmanuel Macron said Monday, according to Reuters.
Standing next to President Donald Trump at the G7 meeting in France, Macron said companies paying the tax would be able to deduct it once an international deal on how to tax large internet companies is finalized.
Earlier this year, France passed a law that would have imposed a 3% revenue tax on digital services with $845 million in global revenue and digital revenue of $28 million in France. Tech giants like Google, Apple and Facebook, who get beat up on by the Trump administration in many other areas but found a friend in the White House for this particular debate, will certainly be relieved.
The deal is just the latest twist in the Trump administration’s aggressive back-and-forth with other countries over taxes and tariffs, which is playing out at a dizzying pace at the G7.
Trump had threatened to fight back against France for the digital tax with tariffs of some type, mulling one on French wine.