U.S.-Europe Trade War Reerupts in London
As bad as tensions over NATO are, things could get even uglier over France’s new digital services tax.
Relations between the United States and its oldest ally, France, were dealt a one-two punch Tuesday after U.S. President Donald Trump lambasted French President Emmanuel Macron for his “very, very nasty” comments about NATO only hours after the Trump administration threatened big tariffs on billions of dollars’ worth of prestige French exports.
And as ugly as the war of words over NATO was at the summit in London, the fight over trade could go on even longer, with Trump reacting harshly to Macron’s imposition of a digital services tax that will hit big U.S. tech firms like Google and Amazon.
“Other countries are likely to think twice before moving ahead with their draft laws,” said Julien Nocetti, an associate fellow at the French Institute of International Relations. “If they see France withdraw its own project, they will surely backpedal.”