Trump slams Macron over digital tax on US tech giants, threatens 'reciprocal action' against French wine

AFP Washington Jul 26, 2019, 10.41 PM(IST)

French President Emmanuel Macron speaks with US President Donald Trump ahead of a meeting at the Prefecture of Caen, Normandy, north-western France, on June 6, 2019, on the sidelines of D-Day commemorations marking the 75th anniversary of the World War II Allied landings in Normandy. Photograph:( Reuters )

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Earlier, the US president had tweeted that Apple will no longer be given tariff waivers or relief for Mac Pro parts which were made in China.

US President Donald Trump on Friday accused his French counterpart Emmanuel Macron of "foolishness" over a move to tax global tech giants, promising substantial retaliation which he hinted could target French wine.

"France just put a digital tax on our great American technology companies," Trump tweeted about the law passed this month that is set to affect US giants Google, Apple, Facebook and Amazon.

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"If anybody taxes them, it should be their home Country, the USA," he added. "We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

Earlier, the US president had tweeted that Apple will no longer be given tariff waivers or relief for Mac Pro parts which were made in China.

Trump's comments came after reports the US tech giant was seeking an exemption from tariffs for the high-end computer, which in the past had been made in the United States. Apple is reportedly now shifting production to China.

"Make them in the USA, no tariffs!" the US president tweeted. Apple shares dipped slightly as Trump tweeted. 

The move comes amid growing trade frictions between the two economic powers. Trump has threatened to slap punitive tariffs on more goods to press Beijing to accept more imports.

According to reports, Apple has chosen a Taiwanese contractor, Quanta Computer Inc., to manufacture the $6,000 desktop computer near Shanghai.