Donald Tump has raised an order for investigation on the planned taxation of tech giants, which would seriously affect the American tech companies. This could be a move that results in retaliatory tariffs.

Robert Lighthizer, the US representative said, “The United States is very concerned that the digital services tax… unfairly targets American companies”.

The unfair trade practices could pave the way for Washington to impose punitive tariffs. Trump had repeatedly done this since taking office.

The parliament of France would be approving the tax implementations on Thursday.

Reports said that the tech giants like Google and Facebook will be charged with a 3% levy on revenue made inside France.

An estimated amount of around half-a-billion euro a year would be brought in with the new tax rule.

The new tax rule insists that any digital company with a revenue of more than €750m – of which at least €25m is generated in France – would be subject to the tax.

Republican Senate Finance Committee Chairman Chuck Grassley and Senator Ron Wyden, the senior Democrat on the panel have welcomed the latest inquiry.

In a joined statement, they said, “The digital services tax that France and other European countries are pursuing is clearly protectionist and unfairly targets American companies in a way that will cost US jobs and harm American workers”.

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