On Monday, the US government said it could impose up to 100% punitive duties on $ 2.4 billion of imports from France, including champagne, handbags, cheese and other products, after concluding that the new digital services tax in France would hurt US tech companies.
French Finance Minister Bruno Le Maire described the US proposals as “unacceptable”. “In the event of new US sanctions, the European Union would be ready to be reopened,” Le Maire told Radio Classique.
French junior economy minister Agnes Pannier-Runacher told Sud Radio that France would be “savage” in its dealings with the US on the issue, and that France would not back down from its digital tax plans.
He said he found the French tax proposal “extremely burdensome for affected US companies,” including Google Alphabet Inc (O: GOOGL), Facebook Inc (O: FB), Apple Inc (O: AAPL) and Amazon.com Inc. (O: AMZN).
The latest decision by the US government toppled major stakes in French luxury goods. Shares in LVMH (PA: LVMH), Kering (PA: PRTP) and Hermes (PA: HRMS) declined 1.4% to 1.5% in early trading.
“It is very dangerous to enter the luxury sector. The sector was first hit by protests in Hong Kong and now this will hit it even harder,” said Clairinvest fund manager Ion-Marc Valahu./Investing.com