WASHINGTON: US President Donald Trump on Wednesday ordered an investigation into France's planned tax on technology companies, a probe that could lead to the United States imposing new tariffs or other trade restrictions.
The"Section 301" investigation will determine if the levy poses an unfair trade practice. Prior investigations have covered Chinese trade practices and European Union subsidies on large commercial aircraft. USTR said in a statement the"services covered are ones where US firms are global leaders. The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain US-based technology companies."Lighthizer said Trump"has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce.
The tax would affect companies with at least €750 million in annual revenues and apply to revenue from digital business including online advertising. Companies such as Alphabet Inc's Google, Apple Inc , Facebook Inc and Amazon.com Inc would likely be subject to the tax.
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