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The United States is threatening to impose a 100% tariff on French goods including wine, cheese and handbags after French lawmakers voted to impose a tax on large tech companies.
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The EU is "ready to respond" to US threats to impose tariffs of up 100% on French imports, including wine and cheese. The move came in retaliation to a digital tax set to hit US giants Google, Amazon and Facebook.
The US has said it may increase tariffs after the EU lost its case at the WTO. The US claimed that loans made by the EU to Airbus for the development of the A380 and other aircraft represented an unfair advantage.
The US leader said he could tax one of France's key exports over a new digital tax on internet giants Google and Amazon. "I've always said American wine is better than French wine," said Trump, who doesn't drink alcohol.
Cheese, wine, olives and many other European goods are now subject to fresh US tariffs in a row over EU subsidies to Airbus. As Brussels threatens retaliation, Germany urges progress in talks for a US-EU trade deal.