Macron tweets he and Trump reach truce on taxing tech companies

It is the latest move to ease trade tensions

A truce has been declared between Presidents Emmanuel Macron and Donald Trump over digital taxes.

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That means neither France or the United States will impose punitive tariffs this year, a French diplomat tells Bloomberg.

It is the latest move to ease trade tensions, this time involving Europe.

Last week, Trump and China signed a phase one deal aimed at balancing trade between the world’s two largest economies.

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Negotiations are expected to continue between France and the U.S. on a global framework where technology companies pay an appropriate amount of tax, a French diplomat said.

TRUMP COULD TARGET FRENCH WINES WITH TARIFFS

The White House and the US Trade Representative’s office did not immediately respond to Bloomberg for for comment.

The Organization for Economic Cooperation and Development is still working on a proposal for taxing tech companies around the world. France pushed ahead with its own levy last year that went after Google, Apple and Amazon.

YOUR FAVORITES FOODS AND ALCOHOL FROM EUROPE COULD GET A LOT MORE EXPENSIVE

The U.S. objected last month that the French tax discriminates against American technology companies.

The U.S. then threatened to hit $2.4 billion of French goods with tariffs in retaliation.

Among the products targeted with tariffs would be wine, cheese and makeup.

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Discussions are expected to be held this week in Davos, Switzerland, at the World Economic Forum.