Macron and Trump declare truce in digital tax dispute



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Macron and Trump declare truce in digital tax dispute

Late on Monday, the 20th of January 2020, the French President Emmanuel Macron said he had a “great conversation” with his US counterpart Donald Trump about a planned 3 per cent digital tax on tech giants’ net revenues in the European Union’s second-largest economy after Germany, adding the leaders had agreed to a decision to work together to avert a rise in existing tariffs on tech conglomerates, which in effect would likely to hit the US-based tech titans likes of Amazon.com Inc., Alphabet Inc.’s Google LLC.

alongside the iPhone maker Apple Inc. Aside from that, following the reveal of media headline that Macron and Trump had reached a truce over digital taxation on mostly US-based tech Goliaths, two French sources close to the negotiation had confirmed on Tuesday (January 21st) that the two leaders reached a truce after the French President Emanuel Macron had agreed to cancel down payments for this fiscal year’s digital tax, while Washington had pledged to keep negotiating instead acting on a tariff threat.

Meanwhile, a French diplomat directly briefed over the subject matter said the leaders in Paris and Washington had agreed to hold their horses until end-2020 ahead of a US Presidential election, while analysts said an added US tariff on French goods such as wine and cheese, which Trump had threatened earlier to hike up to 100 per cent, had pushed the French President backfoot over a digital tax aimed mostly at US-based tech giants.