The Treasury Department is “evaluating a range of potential U.S. responses” to France’s adoption of a digital services tax, indicating that the Trump administration will likely retaliate if France moves forward.
The French Senate July 11 adopted legislation to impose a 3% tax on digital revenues. The Trump administration already announced a trade investigation into the French tax, but the Treasury Department July 11 indicated it is considering its own responses.
“If France unilaterally adopts a DST and the United States does not respond, other countries may impose similar unilateral measures,” Treasury official Kimberly Pinter wrote to Senate...