The 2026 budget will go to a plenary vote in the National Assembly on Nov. 4, after which it must pass the French Senate. Most political groups are backing an increased digital tax — albeit with differing proposals on how big the increase should be.
“This measure clearly shows that we don’t have to wait for Europe,” said Éric Coquerel, a left-wing MP who heads up the finance committee. Fellow lawmaker from the right-wing Republicans, Corentin Le Fur, echoed: “We need to act decisively.”
U.S. President Donald Trump has repeatedly warned against digital services taxes, alongside any measures that he says discriminate against American companies. In August he vowed to “impose substantial additional tariffs” on countries with such rules.
If the move survives highly volatile budget talks, companies say they will sound the alarm to the economy minister — warning of potential sharp retaliation from Washington.
“It’s a direct attack on American companies, so it’s certain that on the other side of the Atlantic there will be retaliatory measures on other French sectors,” said a representative of a U.S. platform who was granted anonymity to speak on the issue.
The move prompted immediate reaction in Washington. “If France moves forward with raising Digital Service Taxes that indiscriminately target American digital companies, the Ways and Means Committee stands ready to work with President Trump and U.S. Trade Ambassador Greer and pursue aggressive retaliatory action,” Republican U.S. representative Jason Smith, who is chairman of the tax-writing Ways and Means Committee, wrote in a post on X.
“I urge France to work cooperatively to address U.S. concerns rather than doubling down on these discriminatory taxes,” he wrote.