France and some other countries have decided to implement the tax on a national level after the European Commission scraped a digital tax plan for the bloc in March to elaborate a common stance on the issue at a global level.

US Trade Representative Robert Lighthizer announced that he launches investigation into France’s planned tech giants tax, adding that Washington is very concerned that the tax would “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,” Lighthizer said in a statement.

Earlier, a source familiar with the situation told Reuters that US president Donald Trump’s administration will launch an investigation into tax on technology giants planned by France, which could potentially result in retaliatory tariffs on France.

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