The world is already getting involved in a new series of trade wars. Levying taxes on Facebook and Google by the government of France would add fuel to the fire. Facebook and Google are the tech giants offered to the world by the USA. The business conducted by the both companies have been made liable to the taxation by the French government. Trump, a staunch supporter of the American First policy could not just sit back and watch the US companies getting taxed; therefore, he sanctioned an investigation commission to look into the matter.
Trump thinks that the levied tax is actually against the rules enshrined by the World Trade Organisation and is agains the international trade practices. Trump now wants to shelter American tech giants. This would definitely cause some trouble to the European Union, as Trump has openly criticised the union of having lopsided trade with America. Trump accused EU of sending in more cars then purchasing tech from the USA, which results into trade-imbalance. Trump at one occasion called EU to be worse than China when it comes to trade balance.
France has moved independently from the EU and has single-handedly applied tax on Facebook and Google. The bucket list also includes Amazon and others. The bill to apply these taxes, which according to the French authorities would yield a tax collection of $563 million, sits on the senate table, and French senate has yet to exercise its prerogative to either approve or reject the bill.
Trump has already entered in a trade war with China. A similar commission was made to probe into the trade practices of the China and the resultant loss to the USA back in 2017. On 22nd March, Trump used a two pronged approach against China, launching a formal complain in WTO against the Chinese malpractice in trade, and unilaterally moving ahead to impose sanctions through protectionist trade tariffs. IMF in a recent statement has indicated the slow down of world’s economy because of the trade wars. A similar trade-dispute of USA is brewing with India.