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US, French officials reach deal on digital tax: report

US, French officials reach deal on digital tax: report
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French and American negotiators have reached an agreement on France’s digital tax law, Reuters reported Monday.

A source close to the negotiations told the outlet that the deal made between French Finance Minister Bruno Le Maire, U.S. Treasury Secretary Steven MnuchinSteven Terner MnuchinMonumental economic challenges await Biden's Treasury secretary Biden's Treasury pick will have lengthy to-do list on taxes On The Money: Initial jobless claims rise for 2nd week | Dow dips below 30K | Mnuchin draws fire for COVID-19 relief move | Manhattan DA appeals dismissal of Manafort charges MORE and White House economic adviser Larry KudlowLarry KudlowMORE would have France repay companies the difference between a French tax and a planned mechanism being drawn up by the Organization for Economic Cooperation and Development.

The draft agreement will reportedly be given to President TrumpDonald John TrumpTrump rages against '60 Minutes' for interview with Krebs Cornyn spox: Neera Tanden has 'no chance' of being confirmed as Biden's OMB pick Pa. lawmaker was informed of positive coronavirus test while meeting with Trump: report MORE and his French counterpart Emmanuel MacronEmmanuel Jean-Michel MacronTrump addresses virtual G-20 summit, heads out before session on pandemic G-20 leaders stress importance of united response to coronavirus pandemic Czech president says Trump should quit after election loss and 'not be embarrassing' MORE during the Group of Seven summit Monday.

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“Trump’s adviser is OK with the proposal,” the source told Reuters. “That would be the mechanism at this stage, that’s the joint proposal.”

The new French law places a 3 percent tax on yearly revenues of technology companies that make at least 750 million euros annually and provide services to users in France, affecting companies such as Apple, Google, Facebook and Amazon.

Those companies have said the tax unfairly affects U.S. businesses and could harm their operations.

Trump has threatened to put a tariff on imported French wines in response to the tax.

"France just put a digital tax on our great American technology companies," he tweeted last month. "We will announce a substantial reciprocal action on [French President Emmanuel] Macron’s foolishness shortly. I’ve always said American wine is better than French wine!"

The European Union has promised to "respond in kind" if such a tariff is levied.