US to probe French plan to tax US-based tech titans

by   |  VIEW 200
US to probe French plan to tax US-based tech titans

On Wednesday, the 10th of July 2019, ahead of a likely EU-US tariff war sooner-than-expected, US President Donald Trump had ordered to launch an investigation on France’s plan to implement added tax on US-based technology tycoons, likes of Amazon, Apple, Google and Facebook, another intransigent move by the US President which would unlikely to head off heats ahead of a much-debated EU-US trade talk.

Adding that Paris had been treating US-based tech companies unfairly by inclining additional taxes, US Trade Representative Robert Lighthizer said in a statement after making announcement of the US probe, “The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies”.

Latest move of Trump administration would proffer Lighthizer about one year to determine the ins and outs of France’s digital-tax plan and its ability to hurt US tech companies. Besides, the “Section 301” investigation would determine whether France’s digital tax law scheduled to be passed through the French Parliament by July 11th would pose an unfair trade practice.

Nonetheless, latest intransigent move of US President Donald Trump would likely to open up another front of his trade warfare, as last week, Trump had threatened EU to raise tariff on $4 billion worth of EU exports, however, financial markets had absorbed the pressure, as EU-Mercosur free trade treaty was expected to cushion up some scratches for Eurozone businesses.