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 MnuchinLawmakers skeptical of progress on spending deal as wall battle looms Trump to tour Apple factory with Tim Cook on Wednesday The Hill's Morning Report — Public impeachment drama resumes today MORE and White House economic adviser Larry KudlowLawrence (Larry) Alan 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 reversed course on flavored e-cigarette ban over fear of job losses: report Trump to award National Medal of Arts to actor Jon Voight Sondland notified Trump officials of investigation push ahead of Ukraine call: report MORE and his French counterpart Emmanuel MacronEmmanuel Jean-Michel MacronRussia vows to return seized warships to Ukraine NATO is not brain dead yet Trump, NATO chief to meet at White House 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.