Trump Responds
France just put a digital tax on our great American technology companies. If anybody taxes them, it should be their home Country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly. I’ve always said American wine is better than French wine!
— Donald J. Trump (@realDonaldTrump) July 26, 2019
Please consider Trump Targets French Wine While Threatening ‘Substantial’ Retaliation Against France for Digital Tax.
Earlier this month, France passed a 3% tax that will affect firms such as Facebook and Google that draw about $28 million or more in revenue from digital services in France. The Trump administration then started an investigation under Section 301 of the Trade Act of 1974.
If, after the probe, the U.S. determines the tax is discriminatory or unreasonably targets U.S. firms, Trump could respond with tariffs. Trade experts considered Trump’s most likely response a 100% tariff on French wine — one of the country’s signature, symbolic products.
French Wine Irrelevant
A tariff on French wine is irrelevant. People who drink it are not all that price-conscious.
Rather, this will accelerate Trump’s desire to punish the EU.
He will use this as part of his excuse to go after German cars and EU agriculture in general.
The consequences will be significant if this accelerates especially given the precarious state of manufacturing in General and Germany in particular.
- US, Germany, Japan in Manufacturing Recessions: Full-Blown Recessions Coming Up
- Manufacturing Recessions vs Real Recessions: How Much Lead Time Do You Expect?
Question of the Day
Meanwhile, I exit with the question of the day.
“I like American wine better than French wine, even though I don’t drink wine. I like the way it looks. “ – Donald Trump
Huh? The drivel that comes out of his mouth…
— Caroline Baum (@cabaum1) July 26, 2019
Is that a purposely stupid statement by Trump or just plain stupid?
Mike “Mish” Shedlock
Why would americans (and other fools) import french wines anyway ? SNOBBERY , that s what it is All about ! It is all in our heads before we even drink it, but does that make french wine any better than say a average californian, australian, S African etc? Don t let the price guide you, it makes you look fckn stupid!
It puzzles me why anyone, other than the French bother with French wine anyway. My family and I quaff plenty of wonderful wine from Oz, Chile, Argentina, Italy, South Africa, California and Oregon. Even Israel and Lebanon produce some very drinkable wines at better prices than the equivalent stuff from France.
As for Champagne, English sparking wine regularly pans the French stuff in blind tastings, not surprising when you know that it was us who invented the “méthode champenoise” in 1662. Australia, Spain, Italy all produce equally good stuff but without a fancy label, full of false mystique about terroir.
Lets face facts – most French wines come from American grape vines that were shipped over when pests wiped out the native varieties and the Ozzies have put so much science and precision into wine making that the French were beating a path to their door to learn how to do it.
I hope Trump puts a 500% tax on French wine, it will give you folks in the US a bit of impetus to try better, less expensive stuff that comes with the name of the grape on the bottle rather than a picture of an old chateau on a hill top.
Glug, glug!
Just ought some luan plywood yesterday… 15 bucks a sheet? 10 years ago I paid 4 bucks a sheet. WTF? Oh, it was now produced with glue that’ safe in California (and I do not live there) so that the termites don’t get sick from eating it, oh and we have all kinds of tariffs on it.
“Anyone who doesn’t think this is a tax on American consumption of Burgundy and Bourdeaux is nuts”
Of course it’s a tax – but many buyers of French wine won’t give a a damn. Some will.
Regardless it’s not that big a deal – An escalating trade war with the EU is
I like how people (and Trump) are outraged by these nickel-and-dime tactics, yet just two days ago we approved a $1.48T Pentagon budget. Hopefully sweating the small stuff and ignoring the big stuff turns out to be a winning strategy!
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Wonder if it has anything to do with this:
“Trump Winery is a Virginia winery situated on Trump Vineyard Estates in Charlottesville, Virginia.”
So, not just the home of the American Bund but also orange wine. (Or is that Orange’s whines?)
Hasn’t Trump tweeted about 100 times how facebook,twitter, and google are out to get him? Now they are “Great American Technology companies”?
There are hundreds if not thousands of French wines available in the US for under $10. Price is very much relevant.
Macron has simply built a 21st century toll booth, the first one on bits and bytes. Unfortunately, it will have the same effect as all other tool booths and bridges throughout human history…restraint of trade and lowering of living standards of all involved.