France and U.S. Move Toward a Temporary Truce in Trade War

Negotiations are continuing at the Organization for Economic Cooperation and Development, but the slow pace of the talks has frustrated European officials — and especially the French government, which has insisted that digital businesses must pay “fair taxes.”

France’s finance minister, Bruno Le Maire, said Tuesday at a meeting in Brussels with European Union officials that Presidents Macron and Trump had “agreed to avoid all escalation between the U.S. and France on this digital tax issue.” But he cautioned that discussions on finding a compromise “remain difficult.”

White House officials declined on Tuesday to confirm the scope of the apparent deal. Late Monday, they released a statement that said the heads of state had “agreed it is important to complete successful negotiations on the digital services tax.”

Mr. Le Maire is scheduled to meet with Treasury Secretary Steven Mnuchin at the World Economic Forum in Davos, Switzerland, on Wednesday to discuss next steps.

Silicon Valley’s tech giants are a target for Europe. Last summer, the European Commission unveiled a proposal to significantly revamp how technology companies are taxed in the 28-nation European Union.

Article source: https://www.nytimes.com/2020/01/21/business/france-US-digital-tax.html?emc=rss&partner=rss