President Donald Trump has agreed to hold off on raising tariffs on French goods, according to news reports citing a “French diplomatic source.”
Trump met with French President Emmanuel Macron on Tuesday. Macron tweeted that he had a “great discussion” with Trump over a digital tax planned by French that would apply to U.S. technology companies.
Great discussion with @realDonaldTrump on digital tax. We will work together on a good agreement to avoid tariff escalation.
— Emmanuel Macron (@EmmanuelMacron) January 20, 2020
“Macron and Trump agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said, and continue negotiations at the OECD on the digital tax during that period,” Reuters reported.
“They agreed to give a chance to negotiations until the end of the year,” the source told Reuters. “During that time period, there won’t be successive tariffs.”
The Trump administration has said it was considering imposing tariffs on imports from France after the French government said it would impose a 3 percent tax on revenue from digital services for companies that make $28 million or more in France.