Trump threatens france and woos great britain

Trump threatens france and woos great britain

Punitive tariffs for some, trade deals with others: U.S. President donald trump has threatened france with countermeasures over its recently passed digital tax.

At the same time, he promised the new british prime minister, boris johnson, that a "very comprehensive free trade agreement" would be concluded.

Trump said at the white house that the tax recently passed by paris for global internet companies was "wrong," and the u.S. Therefore had to react. France "should not have done this. In response to questions from journalists, he said he was considering imposing punitive duties on french wine. It could be duties on wine or on something else, he added.

French finance minister bruno le maire announced on saturday that he would stick to the national tax despite the threat of retaliatory tax cuts. "We will implement this tax as long as there is no international solution," he said in paris. The tax does not specifically target american companies. European or chinese large corporations would also be affected.

The minister also argued that the two issues – wine tariffs and fair taxation of digital companies – should not be mixed. Le maire called on U.S. To find common solution for international tax at upcoming G7 summit in biarritz, france, late august.

The tax adopted by france targets internationally active internet companies such as google, amazon, facebook and apple. Companies whose digital activities generate annual global sales of at least 750 million euros and sales of more than 25 million euros in france are to pay three percent tax on local online advertising lots, among other things. Many of the companies involved are based in the U.S. France had initially sought a global or european solution for a digital tax, but so far there has been no agreement.

If punitive tariffs on wine imports were to be imposed, it would be more expensive for french winegrowers to export to the USA. The price of french wines went up – and many consumers in the u.S. Were able to switch to wines from other countries. Trump also left no doubt about his recommendation: "I have always liked american wines better than french wines."He doesn’t drink alcohol himself, but he likes the way american wines look, he told journalists. "American wines are great."

The U.S. Government had already called for a digital tax after the tax bill was passed in the french senate on 11. July, the U.S. Government had already announced an assessment of the impact on U.S. Trade. Depending on the outcome, the investigation could lead to duties or other trade restrictions on certain french products.

On the other hand, trump is seeking to join forces with the new british prime minister johnson on trade. So far, britain’s membership in the european union has prevented a trade deal, trump said after a phone call with johnson. Bilateral trade could be significantly expanded.

Free trade agreements are agreed centrally by the EU for all member states. Great britain will probably no longer be an EU member as of november and will then be able to conclude bilateral trade agreements again in the future.

Trump had previously offered london the prospect of a free trade agreement in the event of its departure from the EU. However, experts are very skeptical about this: negotiating such agreements is a very lengthy process, and the UK has far less negotiating power than the EU as a whole. A planned free trade agreement between the EU and the USA, for example, was put on hold after trump’s election in 2016.

The u.S. Is the u.K.’S biggest customer as a single country: exports totaled 118.2 billion pounds in 2018 (131.53 billion euros at the end of 2018), or 18.6 percent of total u.K. Exports (634.0 billion euros). Pounds) british exports to eu countries totaled 288.9 billion pounds last year; that’s a 45.6 percent share.

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