Donald Trump announces 25 percent Macron Tariff on $1.3B in French handbags, cosmetics, other goods.
The White House announced a 25 percent Macron Tariff on $1.3 billion worth of French merchandise, including cosmetics and handbags, after a digital service tax was levied against U.S. tech giants.
The Donald Trump administration reportedly saw the Macron Tax as an unfair assault on American companies like Facebook, Google, and Amazon.
Senate Finance Chair Chuck Grassley, and ranking member Ron Wyden, supported Donald Trump’s decision in a joint statement, according to Politico.
“Retaliatory tariffs aren’t ideal but the French government’s refusal to back down from its unilateral imposition of unfair and punitive taxes on U.S. companies leaves our government with no choice,” the statement read.
The White House opened an investigation into the Macron Tax last year, before it was signed into law, to determine whether or not it “unfairly targets American companies.”
The Office of the United States Trade Representative found the Macron Tax to be “unreasonable or discriminatory” and said it “burdens or restricts U.S. commerce.”
It also said it expects France to collect approximately $450 million in taxes from U.S. companies for activities during 2020, and over $500 million for activities in 2021.
Donald Trump tweeted about the Macron Tax soon after the announcement of the probe in 2019 and accused France of stepping out of line.
“France just put a digital tax on our great American technology companies,” Donald Trump wrote in July 2019. “If anybody taxes them, it should be their home country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!”