Trump administration launches unfair trade practices probe of French tech tax

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Trump administration launches unfair trade practices probe of French tech tax
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Trump administration to probe if France’s planned “digital services” tax is an unfair trade practice that targets U.S. tech giants

“The services covered are ones where U.S. firms are global leaders,” the USTR's office said. “The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies.

The USTR is examining the tax under Section 301 of the U.S. Trade Act of 1974, which gives the administration broad discretion to impose retaliatory tariffs in response to foreign trade practices that impede U.S. exports, though the authority also offers other avenues beyond duties. Tech industry officials and other business associations have warned that the tax threatens to sap innovation and welcomed the administration’s move.

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