Mumbai: In the recent tweet the French prime minister called out Donald Trump’s move as moronic. This spat was developed due to the French government’s tax imposition on the USA’s major companies.
The French government developed a law that imposes a 3% tax on the revenues of the world’s biggest tech firms, which include the companies from the USA. His law will be applied to all those who have revenues of $845 million and sales of $28 million in France.
This taxation is not a symbol of anti-America. Said the French finance minister, Bruno Le Maire in one of the press conferences. “The first thing I wish to make clear with our American friends is that we are not targeting specifically American companies,” the main reason for the taxation was that the French government wanted to increase the tax rates to the outsider companies who do business in their countries giving a very less tax in return. Along with America, other companies from countries like China, Germany, and Britain were also aimed.
The negotiations with EU and G7 have not yet been concluded and thus France decided to impose taxes of their own for time being.
But ignoring everything US President Donald Trump made it clear that he wasn’t happy with the tariffs imposed by French. He tweeted saying that, “I’ve always liked American wines better than French wines even though I don’t drink wines,” using wine as a symbolic threat towards French that if they increased the tariffs, the white house to would increase tariffs on the French wine.
America is the largest importer of French wines and an increase in tariff can hamper the export of the wines. French wineries exported 18 million cases of wine to the US in 2017, which is worth more than $3billion.
According to reports France has always been imposing higher rates of tariffs on American wines, for instance, America charges a 5 cent tariff per still wine bottle and 14 cents for sparkling wine bottle whereas French charge a tariff of 11 cents to 29 cents.
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