France and U.S. Move Toward Temporary Truce in Trade War
Summary
Many American companies have been increasingly alarmed by the potential proliferation of digital taxes across Europe and other wealthy nations. On Tuesday, Mr. Mnuchin said in an interview with The Wall Street Journal that Britain and Italy could also face tariffs if they imposed digital taxes. France drew special scorn from Mr. Trump after officials announced plans to impose a 3 percent tax starting Jan. 1 on the revenues that companies earn from providing digital services to French users. Mr. Trump insisted that only the United States could tax American-based companies, and threatened to retaliate with American tariffs of up to 100 percent on French wine, cheese, handbags and more. The O.E.C.D.’s original proposal, released late last year, would allow countries to tax large multinationals even if they did not operate inside their borders.