Advertisement
Business

Macron says France and U.S. have struck a deal on taxing tech giants

Emmanuel Macron and Donald Trump
President Donald Trump and French President Emmanuel Macron give a joint press conference in Biarritz, on the third day of the annual G7 Summit.
(Nicholas Kamm / AFP / Getty Images)

The U.S. and French governments have struck a deal to end a feud over France’s tax on some tech giants, French President Emmanuel Macron said.

“We have reached a very good agreement,” Macron said at a joint news conference with President Trump at the conclusion of the Group of 7 summit in Biarritz, France.

Trump had threatened to impose tariffs on French wine imports in response to France’s planned tax. He didn’t directly answer when asked to confirm the deal, instead joking that “I can confirm the first lady loved your French wine.”

The law Macron signed imposes a 3% tax on the revenue of technology giants such as Alphabet Inc.'s Google, Facebook Inc. and Amazon.com Inc. Trump objected to France taxing U.S.-based companies.

Advertisement

Under that law, the tax — retroactive to January — affects companies with annual global revenue exceeding about $840 million and digital sales in France exceeding about $28 million. Most of the roughly 30 businesses affected are American, but the list also includes Chinese, German, British and French companies.

“We are pushing for international rules on this,” Macron said. “It is not against any company in particular; it’s just to solve the problem.”

Trump has heaped praise on Macron throughout the G-7 summit, which is wrapping up Monday.

Advertisement

President Trump expresses “second thoughts” about escalating the trade war with China as he meets other world leaders at the G7 summit in France.


Newsletter
Get our weekly Business newsletter

A look back, and ahead, at the latest California business news.

You may occasionally receive promotional content from the Los Angeles Times.
Advertisement