Trade

France hits back at Trumps stupid wine tariff threat

U.S. President Donald Trumps threat to impose tariffs on French wine in retaliation for Frances digital services tax is “absurd” and “absolutely stupid,” the countrys agriculture minister said Tuesday.

Didier Guillaume reacted to a tweet by Trump, who wrote Friday that he would “shortly” announce “a substantial reciprocal action” against the digital services tax, also known as the GAFA (Google, Apple, Facebook, Amazon) tax in French, which was adopted by the French senate earlier this month and signed into law by President Emmanuel Macron last week.

“Its absurd for a political and economic debate to say: You tax the GAFA, we will tax your wine. Its completely stupid,” Guillaume told French news channel BFMTV.

He added that the French digital services tax — which levies a 3 percent tax on domestic revenues of digital giants with at least €25 million of revenue in France and €750 million globally — was “completely different” from trade in wine, which is a foreign exchange of goods.

“In any case, we will try to negotiate [with Read More – Source

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