Boy oh boy, grab some popcorn folks, its time to head into high society!
What seems to be a "tax war" is brewing between France and the U.S after the former passed new measures, which impose a three per cent levy on digital companies with global revenues of more than €750m. The U.S considered those measures unfair, as they would impact companies such as Facebook, Amazon, Apple and Google.
In response the U.S of A. proposed tariffs of up to 100 per cent on French imports, including champagne, handbags and cheese. Naturally the French did not like that and stated that "The European Union will hit back at “unacceptable” US tariff threats against French products".
Where even to begin with this one!
It all started, I suppose, when France decided to introduce a new tax on major tech companies, in an effort to " ensure that the tech giants do not route their revenues through tax havens and avoid paying their fair share to the European taxman.". That sounds good on paper, however the French failed to push this tax to a EU-wide equivalent, with countries either fearing U.S retaliation or just because they were housing said major companies.
With an official statement that resembles elementary schoolyard talk, president Trump said "I told you so! The European Union just slapped a $5bn fine on one of our great companies, Google. They truly have taken advantage of the US, but not for long!" back in July and apparently, despite his wording, he did back up his talk with action and back in early December of 2019, they proposed a series of taxes on luxury products such as champagne, cheese and handbags.
A day after that, France "vowed" to hit back, and voila! You can find out more on this article by CITYA.M.
As of today however, I have not seen any new updates, at least through my regular means of research, but regardless, I hope you all found this as interesting as I did.
All jokes aside, the tension in trade relationships between nations does seem to be escalating over the past year or so, and personally I attribute it to the market re-balancing itself after the meteoric rise of the internet-oriented global corporations. I feel that legislation is catching up, and naturally some push is required for things to even out.
Though this piece of news is, ultimately a "quarrel" between the social elite, it should not be mistaken as something that will not affect everyone. It is known after all that when prices on luxury goods go up, the people that have to struggle with this, is your average consumer, as multi billion corporations are just going to raise their prices to make up for it.