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US and France are reportedly close to striking a deal over France's digital tax

The United States and France are close to reaching an agreement over a French tax on tech companies, according to Reuters.

In July, French President Emmanuel Macron signed a law that allowed his government to tax large tech companies that were not based in France. Generally, these companies are only taxed in the country that houses their main base of operations, even though they have business dealings around the globe.

President Donald Trump said that he saw this as an unfair attack against the United States, which houses several large tech companies including Apple, Facebook, Google, and Microsoft.

In a tweet from July 26, Trump said:  "France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron's foolishness shortly. I've always said American wine is better than French wine!"

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According to Reuters, White House economic adviser Larry Kudlow, U.S. Treasury Secretary Steve Mnuchin, and French Finance Minister Bruno Le Maire have drawn up a draft of a possible compromise that they will submit to the leaders of their respective countries. Both Trump and Macron are currently attending the G7 summit in Biarritz, France.

Under this new deal, France would reportedly pay tech companies the difference between the new tax and an amount agreed to by the Organization for Economic Co-operation and Development.

In one of the lighter moments from that summit, President Trump was asked during a joint news conference with Macron about his threats to target French wine — with the questioner noting that first lady Melania Trump had been spotted drinking French wine during the G7 summit. President Trump does not drink alcohol of any kind himself.

"Well, I can confirm that the first lady loved your French wine," President Trump said. "OK. Alright? She loved your French wine."

At the same news briefing, he did not answer questions about whether or not the two countries were actually near an agreement on the digital tax.

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