President Donald Trump has directed the trade department to investigate the effects of planned tax by France on tech giants. A spokesperson from Trump-administration expressed US concerns about the tax which can target American companies and can cause retaliatory tariffs.
At present, the approval of a 3% tax on revenue from companies like Google and Facebook is in pipeline. France considers that tech giants are exploiting tax loopholes on the global level. They make their headquarters in countries which receive low tax due to which their tax bill also reduces. Under the new rule, tech giants with revenue of (almost €25m made in France) up to €750m will have to pay the tax.
Trade representative Robert Lighthizer detailed that the US President has directed them to further find out the effects of the French law on US commerce. Meanwhile, inquiry can cause retaliatory tariffs as Republican Senate Finance Committee considers the tax on digital services harmful for American workers.
Read More: World News
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