French wine might be safe from tariffs after France, U.S. strike compromise on digital tax
Your favorite vintage of French wine likely won't get much more expensive in the near future.
Officials from France and the United States reportedly reached a compromise on Monday following the Group of Seven summit in Biarritz, France, on a new French tax passed last month on digital services provided by large internet companies, like Google and Amazon.
The new agreement stipulates that France would repay companies the difference between its digital tax and whatever taxes come from the agreed-upon Organization for Economic Cooperation and Development's planned mechanism. The threshold for the French tax to be applicable for a company is annual revenues of more than $830 million — including $27 million generated in France — from "digital activities," like collection of user data and selling targeted advertising.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
French President Emmanuel Macron praised the compromise, while maintaining that France will nix its national tax if and when his preferred method of an international system for digital taxation is implemented. German Chancellor Angela Merkel said OECD nations want a solution on that by next year.
President Trump had previously threatened to tax French wine if Paris moved forward with its approved three percent tax on digital services.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
4 tips for keeping your resolutions
The Week Recommends New Year's resolutions seem made to be broken, but with a few adjustments, you can give yourself a shot at sticking with it
By Theara Coleman, The Week US Published
-
'His disdain for international rules could eviscerate the laws of war'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Getty Images and Shutterstock merge into a picture powerhouse to combat AI
The Explainer The $3.7 billion deal is one of the largest in the industry's history
By Justin Klawans, The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published