French president Emmanuel Macron and impeached but not yet removed U.S. President Donald Trump declare a truce in digital tax dispute, and digital services firms get to breathe a sigh of relief.
On Monday, Macron said he and Trump had a "great discussion" over a digital tax planned by Paris, that the two leaders agreed to work together to avoid a rise in tariffs.
They're expected to continue negotiations at the OECD on the digital tax in the coming months, reports Reuters,
"They agreed to give a chance to negotiations until the end of the year," a source told the news organization. "During that time period, there won't be successive tariffs."
France decided in July to apply a 3% levy on revenue from digital services earned in France by firms with revenues of more than 25 million euros ($28 million) in France and 750 million euros worldwide. Washington has threatened to impose taxes on French products in response.
French authorities have repeatedly said that any international agreement on digital taxation reached within the OECD would immediately supersede the French tax.
Macron and Trump declare a truce in digital tax dispute [reuters.com]