According to French Finance Minister Bruno Le Maire, the country will immediately seek the help of the European Union if Washington continues its trade sanctions in January driven by French tax enforcement on digital services.
Earlier, the Trump Administration had announced in July about an additional 25% duty on French cosmetics, handbags and other imports worth $ 1.3 billion in response to France's digital services tax, but said it would postpone implementing the measure until January.
France is acting to postpone its digital services tax collection until next month while international negotiations are underway to re-draft cross-border tax rules for the digital era.
In addition, nearly 140 countries involved in the talks agreed to continue negotiations until mid-2021 after talks came to a halt when Washington refused to sign a multilateral agreement ahead of the US presidential election.
However, France has arranged a move by submitting notices to companies to pay tax installments in December. Based on the collection, France is alleged to have raised 400 million euros this year.
Meanwhile, the country also promised to withdraw French tax enforcement once an international agreement is reached.
Therefore, they want to see what action the Biden administration will take on the issue and pave the way for an international agreement.
