Emmanuel Macron and Donald Trump declare truce in digital tax dispute
Macron and Trump
French President EmmanuelMacronsaid on Monday he had a "great discussion" with USPresident DonaldTrumpover adigitaltaxplanned by Paris and said the two countries would work together to avoid a rise in tariffs.
MacronandTrumpagreed to hold off on a potential tariffs war until the end of 2020, a French diplomatic source said, and continue negotiations at the Organization for Economic Cooperation and Development (OECD) on thedigitaltaxduring that period.
Also watch:France urges US to back OECD proposal
"They agreed to give a chance to negotiations until the end of the year," the source said. "During that time period, there won't be successive tariffs."
France decided in July to apply a 3 percentlevy on revenue fromdigitalservices earned in France by firms with revenues of more than 25 million eurosin France and 750 million euros worldwide. Washington has threatened to imposetaxes on French products in response.
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French authorities have repeatedly said any international agreement ondigitaltaxation reached within the OECD would immediately supersede the Frenchtax.
The White House said on Monday bothTrumpandMacronagreed it is important to complete successful negotiations on thedigitalservicestax.