French Economy and Finance Minister Eric Lombard is not backing down in the face of U.S. President Donald Trump’s tariffs. In fact, he is suggesting a strategic countermove – hitting back by tightening regulations on how American Big Tech companies utilize data.
In an exclusive interview with Le Journal Du Dimanche, Lombard hinted at potential measures to level the playing field.
“We may strengthen certain administrative requirements or regulate the use of data,”
he revealed. It seems like France is gearing up to play hardball by considering imposing taxes on specific activities within the tech sector, although exact details remain under wraps.
The European Union has been contemplating retaliatory actions against the United States’ tariffs, with discussions revolving around potentially targeting untaxed digital services provided by American tech giants. This proposal has sparked mixed reactions among EU members, particularly drawing ire from Ireland, which serves as a hub for numerous U.S. Big Tech corporations.
European Commission President Ursula von der Leyen stands firm in her commitment to addressing Trump’s aggressive trade policies head-on. With technology emerging as a probable battleground for Europe’s response, tensions are palpable between economic powerhouses on both sides of the Atlantic.
At the heart of this transatlantic showdown lies a significant trade imbalance. While the EU boasts a robust €157 billion surplus in goods trade, it lags behind with a €109 billion deficit in services trade, notably encompassing digital services where American behemoths such as Apple, Microsoft, Amazon, Google (now Alphabet), and Meta (formerly Facebook) hold sway over European markets.
Lombard further underscored concerns about potential repercussions on France’s fiscal health stemming from escalating trade disputes with Washington. The looming specter of diminished tax revenues coupled with anticipated GDP contractions threatens to exacerbate France’s already bloated budget deficit scenario.
Despite these mounting challenges, French Prime Minister François Bayrou remains resolute but cautious in his outlook regarding the impact of Trump’s tariff offensive on France’s economy. He expressed grave apprehensions about job losses and forewarned of possible economic deceleration and investment stagnation if stringent measures aren’t taken swiftly.
As tensions escalate across international waters and economic landscapes shift under political pressures, one thing remains clear – navigating through turbulent trade wars demands not just strategic acumen but also resilience in weathering unforeseen economic storms that lie ahead.
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