Trump officials to investigate French tax on tech giants

The Trump administration on Wednesday announced an investigation into the French government over its plans to implement a tax on technology companies.

United States Trade Representative (USTR) Robert Lighthizer expressed concerns that the French digital tax could disproportionately affect American companies.

“The President has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce,” Lighthizer said in a statement.

Background: The French finance minister said in March that the country would impose a 3 percent tax on the annual revenues of technology companies that make at least 750 Euros annually and provide services to users in the country.

The tax would affect multiple U.S. tech giants, including Apple, Google and Amazon.

So, what’s next? The USTR investigation could serve as a precursor to the implementation of tariffs or other trade measures against France at a time when President Trump has ignited trade disputes with other allies.

On Wednesday, the announcement of the investigation was greeted with bipartisan support