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.
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.