The US is right to threaten tariffs over France’s tech tax

Published July 11, 2019 12:42pm ET



The Trump administration is right to threaten France with new tariffs over the new “technology tax” which passed through the French legislature on Thursday.

I’m a free trader, but the moral cause for action here is clear. France’s digital services tax is specifically designed to affect American technology firms such as Facebook, Google, and YouTube, and to provide comparative advantage to French firms. Although its rate would be only 3%, the tax would fall predominantly on American firms rather than French companies. And seeing as U.S. technology companies are the evolving crown jewels of our economy, we must protect from being bullied in foreign markets.

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