Trump vows to retaliate against French digital tax

Donald Trump speaks to France about new taxes added to US companies.

US President Donald Trump has promised to retaliate against France for adopting a pioneering tax on internet giants such as Google, Amazon and Facebook.

He also managed to take a shot at French wine. Mr Trump, who does not drink, tweeted: “I’ve always said American wine is better than French wine!”

The tax primarily targets companies that use consumer data to sell online advertising.

Mr Trump said that if anybody taxes American technology companies, it should be their home country.

He added, referring to French President Emmanuel Macron: “We will announce a substantial reciprocal action on Macron’s foolishness shortly.”

The tax is designed to stop multinationals from avoiding taxes by setting up headquarters in low-tax EU countries.

Currently, the companies pay nearly no tax in countries where they have significant sales.

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