Source: Zero Hedge
Dollar Dips As Trump-Macron Agree On Tariff “Truce” Through Year-End According to a French diplomat, French President Macron and US President Trump have agreed a truce in their dispute over digital taxes that will mean neither side imposes punitive tariffs this year. As a reminder, France decided in July to apply a 3% levy on revenue from digital services earned in France by firms with revenues of more than 25 million euros ($28 million) in France and 750 million euros worldwide. After concluding that the tax on digital revenues – that hits large American tech companies including Google, Apple, Facebook and Amazon.com – unfairly discriminated against US tech companies, the Trump administration had threatened to impose 100% tariffs on up to $2.4 billion of French imports, including champagne. But, if the diplomat and Macron’s tweet are to be believed, both sides have de-escalated… “Great discussion with @realDonaldTrump on digital tax,” Macron said in a tweet. “We will work together on a good agreement to avoid tariff escalation.” Great discussion with @realDonaldTrump on digital tax.