France plans to raise the digital services tax for tech giants to 6%, potentially provoking retaliation from Trump.

PANews reported on October 29 that the French National Assembly passed an amendment to the 2026 budget, proposing to raise the digital income tax rate for companies such as Amazon, Alphabet (Google's parent company), and Meta from the current 3% to 6%. While this increase is lower than another proposal to raise the rate to 15%, it still signifies a significant increase in tax revenue. This move by France could provoke a strong reaction from Trump, who has repeatedly threatened retaliatory tariffs against France in response. Republican lawmakers in the United States have warned that a 15% tax rate would constitute an unwarranted attack on American tech companies, leaving Congress and the Trump administration with virtually no choice but to take strong retaliatory action. This amendment is only one component of the budget bill, which may be voted on next month or in December; whether it will ultimately become law remains uncertain. Although the 6% tax rate amendment was proposed by members of President Macron's party, the French government remains cautious, stating that it will continue to communicate with parliament. The French Finance Minister stated, "We have noted Parliament's desire to strengthen taxes on digital giants. This matter needs to be handled with care, especially regarding raising the tax threshold. We must advance this work through European-level and international dialogue."

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