Trump Says U.S. to Take Action Against France for Tax on American Tech Companies

Date : 07/26/2019 @ 6:46PM
Source : Dow Jones News
Stock : Alphabet Inc (GOOGL)
Quote : 1231.63  -8.4 (-0.68%) @ 12:50AM

Trump Says U.S. to Take Action Against France for Tax on American Tech Companies

Alphabet (NASDAQ:GOOGL)
Historical Stock Chart

2 Months : From Jul 2019 to Sep 2019

Click Here for more Alphabet Charts.
By Vivian Salama 

WASHINGTON -- President Trump promised to take "substantial reciprocal action" against France after its legislature approved a new tax on large American tech companies like Alphabet Inc.'s Google and Amazon.com Inc. over U.S. objections.

"France just put a digital tax on our great American technology companies," Mr. Trump said on Twitter on Friday. "If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

Mr. Trump made a reference to French wine in his tweets, but it couldn't be immediately determined what the reciprocal action would target.

Earlier this month, France's legislature gave final approval to a new tax on large tech companies, making it the first in a series of proposed national taxes on digital services being debated across Europe.

Ahead of the vote, U.S. Trade Representative Robert Lighthizer said his office would investigate the tax under the same broad law on which the Trump administration relied for its trade conflict with China, claiming the measure discriminates against American firms.

France dismissed the threat, asserting that it is a sovereign state that makes sovereign decisions on tax matters.

The French proposal will apply a 3% tax on revenue that companies like Google or Amazon reap in France from such activities as undertaking targeted advertising or running a digital marketplace.

Following the president's tweet, the White House released a more detailed response.

"The United States is extremely disappointed by France's decision to adopt a digital services tax at the expense of U.S. companies and workers," said spokesman Judd Deere. "France's unilateral measure appears to target innovative U.S. technology firms that provide services in distinct sectors of the economy."

"The Trump administration has consistently stated that it will not sit idly by and tolerate discrimination against U.S.-based firms," Mr. Deere added. "The U.S. Trade Representative has already launched a Section 301 investigation into France's digital-services tax, and the administration is looking closely at all other policy tools."

Write to Vivian Salama at vivian.salama@wsj.com

 

(END) Dow Jones Newswires

July 26, 2019 13:31 ET (17:31 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Latest GOOGL Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts


Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.