Lawmakers had initially pushed to hike the levy to 15 percent to hit back at U.S. President Donald Trump’s tariff war, sparking strong reactions from across the Atlantic. Industries in France that fear trade retaliation have also called for caution.
The amendment has yet to survive a final vote on the country’s 2026 budget law next week, after which it must pass the French Senate.
As well as increasing the tax, the measure would raise the global revenue threshold from €750 million to €2 billion — a bid to shield smaller national players from the scope of the proposal.
“The new proposal appears to exclusively target U.S. companies, which will likely spur retaliation impacting the broader French economy,” John Murphy, the senior vice president and head of international at the U.S. Chamber of Commerce said last week. “Cooler heads must prevail.”
“The objective of this tax was not to harm the United States in any way … I say this to the Americans who are listening to us, at least at the embassy,” lawmaker Charles Sitzenstuhl from Emmanuel Macron’s party said Tuesday.
