Breaking News
Translate

France fights back over U.S. tariff threat to Champagne, cheese

Trump, Macron, U.S., France
France and the European Union said on Tuesday they were ready to retaliate if U.S. President Donald Trump acted on a threat to impose duties of up to 100% on imports of champagne, handbags and other French products worth $2.4 billion.

The threat of punitive tariffs followed a U.S. government investigation that found a new digital services tax in France would harm U.S. technology companies, and will intensify a festering trade dispute between Europe and the United States.

In London for a NATO summit, Trump and French President Emmanuel Macron exchanged a tight-gripped handshake before both said they hoped they could smooth out their differences over the digital services tax.

“They’re American companies. They’re tech companies. They’re not my favorite people, but that’s OK, I don’t care, they’re American companies. And we want to tax American companies. It’s not for somebody else to tax them,” Trump said.

“So it’s either gonna work out, or we’ll work out some mutually beneficial tax,” he said, referring to the levy threat. “And the tax will be substantial. I’m not sure it’s gonna come to that, but it might.”

The spat marks a new low in testy relations between Trump and Macron, who have been at odds over the American’s unilateralist approach to trade, climate change and Iran.

Earlier on Tuesday, Trump criticized European allies, singling out Macron for his “very nasty” comments portraying the NATO alliance as “experiencing brain death”.

Macron’s finance minister called the tariff threat unacceptable and said the EU was primed to respond if the United States imposed the new tariffs

ALSO READ: Sowore rejects DSS bid to transfer him to correctional facility

The European Commission, the EU executive, said the 28-nation EU would act as one and that the best place to settle disputes was at the World Trade Organization.

“I am determined to defend the interests of my country and of Europe,” Macron said, seated next to Trump.

The United States has already imposed 25% duties on French wine and cheese as part of its WTO-sanctioned response to illegal EU aircraft subsidies, a move exporters said would penalize U.S. consumers while severely hurting French producers.

Source: Reuters

Vanguard News

All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!