Trump promises retaliation for French tech giants tax

So-called tea-totaling US President also believes US wine is better than French vin.

France levies 3% turnover tax on world's largest tech companies Tech companies making €750 million globally and €25 million in France will have to pay the new tax.

In typical fashion, US President Donald Trump has taken to Twitter to complain about the latest topic du jour -- the proposed French turnover-based tax for tech giants.

Under the Bill passed by the French Senate earlier this month, a 3% tax will be applied to tech companies that make €750 million globally and €25 million in France from public advertising and digital intermediary services to consumers. Online businesses, digital services providers, in addition to companies that provide communication, payment, or financial services are exempt from the 3% tax.

In effect, the Bill targets the GAFA companies of Google, Apple, Facebook, and Amazon.

Writing on Friday, Trump responded to the French Bill promising retaliation.

"If anybody taxes them, it should be their home Country, the USA," he wrote.

"We will announce a substantial reciprocal action on Macron's foolishness shortly."

The President then followed up with a statement based on his extensive experience as a non-drinker.

"I've always said American wine is better than French wine!"

Reuters reported over the weekend that French Finance Minister Bruno Le Maire said the tax will proceed, and called on the US to not mix the issue of digital taxation and wine.

Last month, after months of bellicose rhetoric, Trump backed down and partially lifted the ban that had been put on Huawei by the US. 

"US companies can sell their equipment to Huawei. We're talking about equipment where there's no great national security problem with it," the President said in June.

Huawei is still on the US Entity List, which bans US companies generally from supplying technology and components to it, but in some cases certain firms will be able to resume supplying approved technology with the company after obtaining a license.

Related Coverage

France passes turnover-based tax Bill for tech giants despite US disapproval

Tech companies making €750 million globally and €25 million in France will have to pay 3% of total annual revenues in tax.

Waymo, Nissan, and Renault team up on driverless cars in France and Japan

The research into the viability of bringing driverless car services to France and Japan will be conducted in both countries.

Google sibling Jigsaw brings anti-troll AI to France ahead of EU elections

French news publisher Le Monde is launching a new comments section using Jigsaw's Perspective API.

How Trump's trade war with China could impact the US tech industry (TechRepublic)

Alex Feinberg, Director of Partnerships at OKcoin, explains why the global trade war could hamper American innovation.