Whether Chablis, Sancerre or Pomerol, French wine is better than American wine.
But President Trump rightly threatens to tariff on a French tax on US technology companies. Trump explained his position on Twitter.
France has just levied a digital tax on our major American technology companies. If someone taxes them, it should be his home country, the USA. We will soon announce a substantial countermeasure to Macron's stupidity. I have always said that American wine is better than French wine!
̵1; Donald J. Trump (@realDonaldTrump)
26th July 2019
Do not get me wrong, I support free trade. However, free trade must flow in both directions. The United States, in turn, can not remain idle when other nations unfairly exploit American companies. And tariffs provide a crude but effective tool to enforce the review of unfair actions.
This is the case with the French technology tax.
This tax is extremely unfair on its inadequate impact on US technology companies such as Amazon, Facebook and Google. France protects French technology companies by targeting higher-income US firms and punishes American companies for being better. It is an attack on the American economy in the protectionist interest of the socialist economy of France. France needs to know that it can not act unfair on America and expects us to just sit back and smile.
Hopefully President Emmanuel Macron will reconsider his tax. France is a close ally of the United States, and our two nations have a strong interest in expanding trade and cooperation. The trade must be fair and free. Whether abroad or at home, US technology companies are a crown jewel of our economy. As in this case, they deserve protection.