US threatens tax on champagne and French cheese.

AFP

The Trump administration is threatening to slap import taxes on $2.4bn worth of French goods in retaliation for the country's new digital services tax.

The US says the tax penalises firms like Google, Amazon and Facebook, and is proposing to hit back with tariffs of up to 100% on products including cheese, champagne and handbags.

The digital tax is designed to prevent tech firms from dodging taxes.

French minister Bruno Le Maire called the US threat "unacceptable".

"In case of new American sanctions, the European Union would be ready to riposte," the finance minister told French radio on Tuesday.



Full story at BBC.