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The U.S. Trade Representative on Friday announced plans for a 25% tariff to be slapped on $1.3 billion worth of French goods, but the Trump administration intends to defer the tax collection for up to six months.
The state of play: U.S. trade officials acknowledge the move is retaliatory, serving as a response to the 3% French digital service tax that targets major U.S. internet companies, like Facebook and Amazon. The U.S. argues the French tax is an unfair way to collect revenue from companies that earn billions in foreign markets.
- The duties will affect French handbags, cosmetics and soaps, per Politico.