Published Date: 03.04.2025 04:35 / Politics

France Plans Digital Tax Over US Tariffs

France Plans Digital Tax Over US Tariffs

France has signaled its intention to respond to United States President Donald Trump's newly imposed tariffs with reciprocal measures that may target digital services. French government spokesperson Sophie Primas announced on Thursday that the French government, in coordination with the European Union, is preparing a two-stage response to the 20% US tariffs placed on goods from the EU.

Primas stated, “We will continue to talk over Trump tariffs. There will likely be a first response in mid-April and then another one in late April.” She emphasized that France is “ready in this trade war” and warned that the US tariffs could cause a “recessionary impact” in certain economic sectors, particularly those directly affected by the new duties.

Among the potential areas of retaliation, France is considering a digital services tax aimed at major American tech companies operating in Europe. This step would represent a significant escalation, as digital services taxation has long been a point of contention in transatlantic economic relations.

Earlier, French President Emmanuel Macron announced plans to meet with representatives of industries most impacted by the tariffs to assess the domestic effects and strategize further responses. The government has indicated that it will take a calculated approach, balancing national economic interests with a firm stance against what it sees as unilateral and unjustified US actions.

Primas reiterated that France is acting in unison with the broader European Union response. EU leaders have also expressed concern over the economic fallout of the tariffs, warning that the measures threaten fair competition and global economic stability.

President Trump introduced the tariffs as part of his broader “Liberation Day” trade strategy, which aims to rectify perceived imbalances in the global trade system. The European Union, among other partners, has pushed back against this narrative, accusing the US of using tariffs as leverage rather than engaging in constructive dialogue.

The French government is expected to provide additional details about its digital tax and other potential retaliatory actions in the coming days. As tensions rise, both sides appear to be bracing for a prolonged trade standoff, with significant implications for transatlantic commerce and the global economy.

With mid-April approaching, all eyes will be on France’s next move and whether it triggers broader escalation or opens a new phase of negotiations between Washington and Brussels.