WASHINGTON - France announced that it would start taxing US digital companies with global annual sales over 750 million euros ($849 million) and sales in France of at least 25 million euros after the EU failed to negotiate a European-wide tax.

US President Donald Trump slammed the French plans to impose additional taxes on digital companies operating in the country, noting that President "Macron’s foolishness" would result in reciprocal steps against his country. In his tweet, he hinted that French wine could be targeted in the US response.

French Finance Minister Bruno Le Maire announced on 5 April that the country is considering taxing the largest digital companies operating in the country to "bring more justice and efficiency to the international tax system". The proposed tax will affect firms with global annual sales over 750 million euros ($849 million) and sales in France of at least 25 million euros. Many of the companies that fit these criteria are US-based. The announcement came after the EU failed to reach common ground on a Europe-wide digital tax.

Washington said on 11 July that it would look into France's plans to impose the new tax, citing concerns that it could "unfairly target 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", US Trade Representative Robert Lighthizer said.