France and the European Union said on Tuesday they were ready to retaliate if U.S. President Donald Trump acted on a threat to impose duties of up to 100% on imports of champagne, handbags and other French products worth $2.4 billion.
The threat of punitive tariffs followed a U.S. government investigation that found a new digital services tax in France would harm U.S. technology companies, and will intensify a festering trade dispute between Europe and the United States.
In London for a NATO summit, Trump and French President Emmanuel Macron exchanged a tight-gripped handshake before both said they hoped they could smooth out their differences over the digital services tax.
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