What Happened The Office of the U.S. Trade Representative announced July 10 that U.S. President Donald Trump had directed the agency to launch an investigation into France's proposed digital service tax bill under Section 301 of the Trade Act of 1974. The bill was passed by France's lower house last week and passed by its Senate on July 11. Once rolled out, the proposal would implement a 3 percent tax on revenue that global digital companies earn in France. To be eligible for the tax, a company must have global revenue of at least 750 million euros and French revenue of at least 25 million euros. Why It Matters The proposed tax's thresholds mean that U.S. tech giants are affected almost exclusively, and most French (and European) firms are ignored. Because of this, Washington views the measure as discriminatory and effectively a trade barrier of sorts.