The two countries are set to impose taxes on tech giants later this year, which the U.S. has said unfairly discriminates against its homegrown companies. If the countries don’t abandon their plans, “they’ll find themselves faced with President Trump’s tariffs,” said U.S. Treasury Secretary Steven Mnuchin. (The Wall Street Journal)

Talking point: The warning comes a day after France said it had reached a ceasefire with the U.S. in their dispute over digital taxes, which means neither side will impose punitive tariffs this year. The U.S. had threatened to put US$2.4 billion of tariffs on French goods like wine, cheese and makeup in retaliation to France’s revenue tax on tech companies like Facebook and Google. A spokesperson for Prime Minister Boris Johnson said the British government, which will begin talks over a post-Brexit trade deal with Washington next month, will nonetheless go through with its digital-tax plans. Italy’s government declined to comment. The pressure is now on to get consensus among the 135-plus members of the OECD-led agreement on how to tax digital profits—an agreement that would be backed by France and Britain, and is favoured by Apple’s Tim Cook. The OECD will meet at the end of January to agree on the details of the agreement.