The White House has launched a trade investigation into a new French law, which U.S. officials argue could discriminate against large, American technology companies.
This week, French lawmakers voted to impose a 3 percent tax on revenues from digital services that reach French users. It would apply to companies with total revenues of 750 million euros internationally, and with at least 25 million euros of revenues in France.
The law, which French President Emmanuel Macron is expected to sign within two weeks, could leave U.S. tech giants like Facebook, Google, and Amazon facing a hefty new tax bill.
On Wednesday, the U.S. Trade Representative Robert Lighthizer began an investigation into France over whether the law would constitute an unfair trading practice. The White House contends that the tax appears to target particular services in which the U.S. excels.
The European Union had hoped, but ultimately failed, to reach a tax plan similar to France’s that would apply to all 28 of its member states.
The European Commission, an agency that proposes legislation within the European confederation, estimates that digital companies pay half the effective tax rates of their non-technology-based counterparts.
The Commission had proposed a 3 percent tax rate on companies that profit from online placement of advertisements, sale of user data, and interactive, digital platforms.
Like with recent duties imposed against China, the U.S. could implement tariffs on French goods, should it find that the law unfairly targets American digital services companies.
Facebook ($FB), Google ($GOOGL), and Amazon ($AMZN) did not respond to a request for comment by the time of publication.
A new poll finds U.S. adults are more likely than they were a year ago to think immigrants in the country legally benefit the economy. That comes as President Donald Trump's administration imposes new restrictions targeting legal pathways into the country. The Associated Press-NORC Center for Public Affairs Research survey finds Americans are more likely than they were in March 2024 to say it’s a “major benefit” that people who come to the U.S. legally contribute to the economy and help American companies get the expertise of skilled workers. At the same time, perceptions of illegal immigration haven’t shifted meaningfully. Americans still see fewer benefits from people who come to the U.S. illegally.
Shares of Tylenol maker Kenvue are bouncing back sharply before the opening bell a day after President Donald Trump promoted unproven and in some cases discredited ties between Tylenol, vaccines and autism. Trump told pregnant women not to use the painkiller around a dozen times during the White House news conference Monday. The drugmaker tumbled 7.5%. Shares have regained most of those losses early Tuesday in premarket trading.
Scott Trench, host of the BiggerPockets Money Podcast, explores how recent rate cuts, high borrowing costs, and mortgage rates are reshaping U.S. real estate.
A look into how disruption, AI, and global economic trends are transforming the modern supply chain with Jeremy Jansen, Head of Supply Chain at Wells Fargo.
Delta CSO Amelia DeLuca reveals at the Fast Co. Innovation Festival how tech, sustainable aviation fuel, and smart operations are revolutionizing air travel.
Chipmaker Nvidia will invest $100 billion in OpenAI as part of a partnership that will add at least 10 gigawatts of Nvidia AI data centers to ramp up the computing power for the owner of the artificial intelligence chatbot ChatGPT.
Two of the nation’s biggest real estate services companies are combining in a deal that will bring Century 21, Compass and several other major brokerage brands under the same umbrella.
