US threatens 100% tariffs on French goods over digital tax

The US on Monday threatened to impose tariffs of up to 100% on $2.4 billion in French goods in retaliation for a digital services tax it says is discriminatory.

A report from the US Trade Representative's office found the tax penalises American tech companies like Google, Apple, Facebook and Amazon.

The agency will accept public comment on the plan through January 6 and hold a hearing January 7.

The French tax is designed to prevent tech companies from dodging taxes by putting headquarters in low-tax European countries.

It would impose a 3% annual levy on French revenues of digital companies with yearly global sales worth more than $830 million and French revenue exceeding $28 million.

USTR Robert Lighthizer warned that Washington is also considering widening the investigation to look into similar taxes in Austria, Italy, and Turkey.