On Thursday France introduced a punitive tax on technological giants like Google, Amazon and Facebook despite threats from the United States.
The allies must resolve their differences “without using threats,” said French Economy Minister Bruno Le Maire, just before the vote to approve the measure. The French Senate estimated that the levy will mean 400 million euros (450 million dollars) for the state coffers this year and 650 million dollars next year.
Donald Trump’s government announced an investigation into the tax Wednesday night, under the same premise used last year to investigate Chinese technology policy. That investigation led to the imposition of tariffs on Chinese imports worth 250,000 million dollars.
The French rate on digital services would impose an annual tax of 3% on the income in France of digital companies with annual global sales of more than 750 million euros (844 million dollars) and an income in France over 25 million euros.
The Canadian government for its part has not hinted at bringing such tax to the country, as Prime Minister Justin Trudeau in 2018 said no to taxing foreign web giants, saying he doesn’t want to hurt Canadian taxpayers.