The U.S. Trade Representative said the measure “discriminates against U.S. digital companies, such as Google, Apple, Facebook, and Amazon,” and is inconsistent with current international tax policy. It proposed a 100 per cent duty on products such as handbags, sparkling wine, Roquefort cheese and enamelled cast iron cookware. France’s digital tax—three per cent on some sales of firms with at least €750 million in global and €25 million in local revenue—will be imposed retroactively for 2019. (The Logic)

Talking point: The tariffs open yet another front in the U.S. trade war. French Finance Minister Bruno Le Maire said the European Union is “ready to retaliate,” although EU officials in the U.S. are first seeking talks over a settlement. The White House is game—President Donald Trump called it a “minor dispute” and said the two sides will “probably be able to work it out.” But the countries already compromised in August, when France agreed to reimburse digital firms the difference between what it charges them and what they will owe under a new OECD plan for taxing multinationals, due by the end of 2020.