The exchange which partly centred on Iran and the upcoming summit of the G7 group of rich nations in August came after Trump earlier said he would hit France with “substantial reciprocal action” after Paris announced a tax that will affect US technology companies.
“The president also underlined that the G7 summit would be an important opportunity to move towards a universal taxation of digital activities, which is in our common interest, and which we need to keep working on in order to obtain a broad international agreement,” Macron’s office said.
Donald Trump threatened to tax French wines in retaliation for France’s tax announcement.
Trump had told Macron last week that he was concerned about the proposed digital services tax.
“If anybody taxes them, it should be their home country, the USA. We will announce a substantial reciprocal action on Macron’s foolishness shortly,” Trump tweeted on Friday.
“I’ve always said American wine is better than French wine!”
Later in the Oval Office, Trump told reporters the tax decision was wrong and he threatened the key French export.
“They shouldn’t have done this,” Trump said. “I told them, I said, ‘Don’t do it because if you do it, I’m going to tax your wine.'”
He said a few minutes later that the US response would be announced soon, saying that it “might be on wine, it might be on something else.”
Trump and Macron spoke by telephone and discussed the tax and next month’s summit of the Group of 7 (G7) rich nations in France, the White House said.
The United States is by far the largest single export market for French wine and spirits, which is France’s second-biggest export after aerospace.
The United States in 2018 accounted for nearly a quarter of all French wine exports, or 3.2 billion euros’ (US$3.6 billion) worth.
French economy minister Bruno Le Maire said in a statement after Trump’s tweet that “the universal taxation of digital activities is a challenge that concerns all of us.
“We want to reach a deal on this within the framework of the G7 and the OECD. In the meantime, France will move ahead with national decisions.”
White House spokesman Judd Deere said the United States “is extremely disappointed by France’s decision to adopt a digital services tax at the expense of US companies and workers.
France’s unilateral measure appears to target innovative US technology firms that provide services in distinct sectors of the economy.”
He added, “The administration is looking closely at all other policy tools.”
Two weeks ago, the French Senate approved the 3% levy that will apply to revenue from digital services earned in France by companies with more than 25 million euros in French revenue and 750 million euros (US$834 million) worldwide.
Other EU countries, including Austria, Britain, Spain and Italy, have also announced plans for their own digital taxes.
Earlier this month, the United States threatened tariffs on an additional US$4 billion worth of European Union goods, including wine, cheese and whiskey that could be hit with tariffs as part of a nearly 15-year-long dispute at the World Trade Organization (WTO) over aircraft subsidies given to US planemaker Boeing and its European rival, Airbus.