French President Emmanuel Macron said Monday August 26th that G7 members had reached an agreement on the taxation of tech giants, a long-running subject of friction between France and the US, AFP reported.
President Trump had threatened to hit back with tariff action after France passed a law earlier this year that would impose a 3% tax on revenues earned on digital services in France.
The deal is to end a standoff over a French tax on big internet companies, President Macron said, according to Reuters.
"On the digital tax we have reached a deal to get beyond the difficulties we had between us," Macron told a press conference with President Trump at the G7 summit in Biarritz, adding France would scrap its own digital tax once the new international levy is in place.
Macron said that companies that pay the tax would be able to deduct the amount once a new international deal on how to tax internet companies is found next year.
"We've done a lot a work on the bilateral basis, we have a deal to overcome the difficulties between us," Macron said at the end of the G7 summit.