He says the united states is able to tax French wine in retaliation to the digital load

WASHINGTON/PARIS (Reuters) – U.S. President Donald Trump said on Friday that the United States could become France’s soon to be a “significant reciprocal action”, and warned that a new U.s. tax on French wines, it was possible – after all, Paris has announced that a tax is aimed at U.S. technology companies.

FILE PHOTO: US President when He comes to the door, in order to take part in the “Promise of America’s workforce – One year Celebration’ event in the State Dining Room of the White House in Washington, d.c., USA, on 25 July 2019. (REUTERS photo/Leah Millis

“If we tax them, it is their own Country, the united states of america. We are proud to announce a significant reciprocal action at the Macron, it is a folly and short,” He tweeted, referring to the President of france, Emmanuel Macron. “I have always said to Us, wine is better than French wine!”

Later, in the Oval Office, He told reporters that the tax ruling was wrong, and he was the most important French exports.

“They shouldn’t have done that,” He said. “I told them,” I said, ” don’t do it, because if you do, I’m going to load up on your wine.'”

He said a few minutes later, the US reaction would be announced soon, and it “could have been the wine, it might be a result of something else.”

The United States is, by far, the largest export market for French wines and spirits, which is France’s second-largest export, after aerospace. In the United States in 2018, accounting for almost a quarter of all French wine exports, or the 3.2 billion euros ($3.6 billion) worth it.

The French Economy minister, Bruno Le Maire, said in a statement after Trump’s tweet that the “universal taxation of digital activities is a challenge that concerns all of us. We are trying to achieve in the framework of the G7 and the OECD. In the meantime, France will go to the national decisions are made.”

White House spokesman Judd Deere said that the United States is very disappointed by the French decision to choose the services of the tax at the expense of AMERICAN businesses and workers. In france, it is a one-sided measure, it seems to be focused on the innovative US technology companies that provide services in the various sectors of the economy.”

He added: “the administration is looking closely at all of the other instruments.” Last week, He spoke with a Macron, and its concerns have been expressed about the state of the proposed services, the taxes, the White House said.

Earlier this month, the United States threatened tariffs on another $4 billion in extra European Union and for goods, including wine, cheese, and whiskey, which could affect the price as part of a 15-year-old dispute at the World Trade Organization over aircraft subsidies provided to the U.S. planemaker Boeing Co and its European rival Airbus, it’s very smooth.

The EU’s director general for trade, The Vincent this week, it said that they are expected to Trumpet the administration to proceed with the execution of certain of its rates following a WTO arbitrator’s ruling on the damages caused by Boeing as a result of that unlawful government of the EU’s support for Airbus.

Two weeks ago, the French Senate approved the 3% tax that applies to income from services is earned in France by companies with more than 25 million euros in the French and turnover of 750 million euros ($834 million) in the world.

Other european union countries, including Austria, great Britain, Spain, and Italy, have announced plans for their own digital tax.

They say that a levy is necessary because of the large, multi-national internet companies such as Facebook and Amazon are currently in a position to book profits in low-tax countries such as Ireland, where the revenue is coming from. The political pressure to respond is growing as the local shops on main street and online, have been placed at a disadvantage.

The U.S. Chamber of Commerce and industry, said that the tax “targets, AMERICAN businesses almost exclusively, and largely spared the French companies. We have repeatedly called on European governments to put this issue on the multilateral negotiations in the OECD.”

The us Trade Representative Office (USTR) last month said that it would be a public hearing on Aug. 19, the probe of France’s planned tax on large technology companies are an Asset to carry out an investigation into the load, which could cause the United States to impose new tariffs or other trade restrictions.

M s, having to do with new tariffs on French goods after the public comment period will close on Aug. 26.

USTR said the charge was an “unfair tax policy”. The plan is to depart from in the the tax standards, “the extraterritoriality; taxation of income, not income, and the goal is to punish technology companies for their business success,” he said.

The tax is due to apply retrospectively from the start of 2019 at the latest. USTR said that it calls into question the fairness of the tax.

Reporting by Tim Ahmann, Andrea Shalal, Steve Holland and David Shepardson in Washington and Sarah White in Paris; editing by Dan Grebler and Jonathan Oatis

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