Champagne tariffs on ice? Trump and Macron call truce
Chris Mercer - Source: www.decanter.com
French president Emmanuel Macron has said he will work with his US counterpart, Donald Trump, to 'avoid tariff escalation' amid reports of a truce deal over France's controversial digital services tax.
Credit: Tristan Gassert/Unsplash
French president Emmanuel Macron and US president Donald Trump appeared to have eased tension over France’s digital services tax following a phone call ahead of this week’s Davos economic forum.
Macron said in a tweet, ‘Great discussion with @realDonaldTrump on digital tax. We will work together on a good agreement to avoid tariff escalation.’
US and French officials told the Wall Street Journal that France had agreed to pause its digital services tax until the end of 2020, in return for a ceasefire on retaliatory tariffs. However, the ceasefire was not officially confirmed by the US government.
US trade officials had threatened to raise tariffs by ‘up to 100%’ on a range of French goods, including Champagne and sparkling wine, Roquefort cheese and luxury handbags.
Tariffs at that level would mean price rises for US wine lovers and could have a potentially devastating impact on US importers and merchants, said US wine industry representatives at a public hearing earlier this month.
The US is also the largest export market for Champagne in value terms, worth around 577m euros in 2018.
Read the full article at: https://www.decanter.com/wine-news/us-champagne-tariffs-digital-tax-430888/