Macron threatens to drag EU into trade war with US in retaliation to Trump tariff plans

Paris vowed to retaliate if the customs levies, of up to 100 percent, are imposed by Washington as a response to French digital tax on American technology giants Google, Amazon, Facebook and Apple. US officials are currently conducting a consultation into whether President Trump can legitimately implement the customs. Bruno Le Marie, France’s finance minister, said: “This trade war is in no-one’s interest and I call on our American friends to display wisdom, to return to their senses.”

He added Paris would have no choice but to “retaliate” if Washington goes ahead with President Trump’s plan.

The US leader has denounced Emmanuel Macron’s proposed digital tax, who claims tech giants are avoiding traditional levies on their profits, as discriminatory and mainly aimed at American firms.

In response, Washington drew up a list of French products worth £1.8 billion that could face tariffs of up to 100 percent.

Culturally significant products, such as Roquefort cheese, Champagne, and handbags and cosmetic from French luxury brands, make up the list.

In a letter to US trade representative Robert Lighthizer, Mr Le Maire wrote: “The trade sanctions that your office is proposing are highly disproportionate. Their impact on French companies and workers would by far exceed the impact of the Digital Services Tax on American companies.

“I would also like to point out that US companies and workers will not benefit from increased tariffs, and the only alternative to French products in some cases is in fact Chinese rather than American.”

He added: “If the US were to decide to impose trade sanctions against the EU over the French digital services tax, it would deeply and durably the transatlantic relationship at a time when we need to stand united.”

The French finance chief said Brussels was “contemplating the various options to defend our trade rights in a proportionate and determined manner, as we have in the past”.

Mr Le Maire is due to meet EU trade commissioner Phil Hogan in Paris today to discuss the joint response.

A decision by the US trade office on the tariffs is due to be announced within weeks as the consultations come to an end.

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“I don’t think that trade wars are a good thing,” Mr Johnson said.

“I do think we need to look at the operations of the big digital companies and the huge revenues they make in the UK and the amount of tax they pay.”

Speaking during an election campaign visit, the Prime Minister added: “We need to sort that out and make sure they make a fairer contribution.”

source: express.co.uk