US facing new front in trade conflict

Trump threat to hit back at French tax prompts Macron warning on EU action

Battle lines are being drawn for a possible trade war between the European Union and the United States after US President Donald Trump's threat to put 100-percent tariffs on French goods such as Champagne and cheese prompted French President Emmanuel Macron to declare that any such measures would be treated as an attack on all of Europe.

France intends to place a tax on global technology companies such as Facebook and Google, saying digital revenues are taxed unduly lightly compared with their "real-life revenues".

This plan provoked an instant reaction from Washington and the matter has escalated into a public dispute overshadowing the gathering of global leaders in London to mark the 70th anniversary of the NATO strategic alliance.