Emmanuel Macron extends digital tax talks after phone call with Trump

Marco Green
January 21, 2020

The protesters decision to target the museum may also have been a symbolic one since French President Emmanuel Macron gave his victory speech in front of I.M. Pei's iconic glass pyramid after the 2017 presidential election.

While he was still hopeful of a deal by Wednesday, the minister said: "I do not hide the fact that it is very hard, it is one of the most hard negotiations that I have conducted, it is far from being a done deal".

Mr Trump, on Twitter, responded "excellent!" to Mr Macron's post, without providing any more details.

The White House said the two leaders "agreed it is important to complete successful negotiations on the digital services tax".

Macron tweeted he had a "great discussion" with Trump.

France has been searching for a new model for tax revenues earned through advertising and online sales. Companies above the threshold must pay a 3 percent tax.

Last year, the USA president threatened to impose tariffs on French goods in response to France's new tax on American tech giants, such as Google, Amazon, Facebook and Apple. This opened the door to the USA threat to retaliate against $ 2.4 billion of French goods.

Avoiding sanctions that could be announced as soon as tomorrow is "far from assured", he told French television LCI.

The ceasefire follows week-long discussions between Treasury Secretary Steven Mnuchin and French Finance Minister Bruno Le Maire, which should take place on Wednesday in Davos, the alpine resort where government officials and business leaders meet in the winter to discuss what the problem is affects global economy.

Paris and Washington are expected to continue negotiations over the digital tax at the Organization for Economic Cooperation and Development (OECD) until the end of the year.

"France is pursuing its objective of fair taxation on digital companies and finding a compromise within the framework of the OECD", the French presidency said Monday.

After blocking the tech tax talks at the OECD for several years, Washington relaunched them last year only to make proposals in December which France rejected before going ahead with its tax.

Other reports by Click Lancashire

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