Feb 13 (Reuters) - President Donald Trump on Thursday
said he planned to impose tariffs on Canada and France over
their digital services taxes on U.S. technology giants, which
has been a long-standing irritant.
Canada, seeking to address the challenge of taxing digital
giants like Google parent Alphabet and Amazon.com ( AMZN ) that can book
their profits in low-tax countries, began imposing the tax in
June last year.
Trump tasked his economics team on Thursday with devising a
plan to impose reciprocal tariffs on every country that levied
duties on U.S. imports.
A White House fact sheet, stating that "only America should
be allowed to tax American firms," complained Canada and France
used digital services taxes to each collect over $500 million
per year from U.S. companies.
"Overall, these non-reciprocal taxes cost America's firms
over $2 billion per year. Reciprocal tariffs will bring back
fairness and prosperity to the distorted international trade
system and stop Americans from being taken advantage of," said
the fact sheet. It gave no further details.
Last year, under the previous Biden administration,
Washington requested trade dispute settlement consultations with
Canada over the tax, calling it discriminatory.
The office of Canadian Prime Minister Justin Trudeau was not
immediately available for comment.