Washington (CNN) President Donald Trump and his French counterpart have agreed to hold off on escalating a trade war, officials said, avoiding for now a massive new tariff increase on French goods such as wine, cheese and handbags. Trump had threatened the new duties in retaliation for a tax slapped on revenue earned in France by American tech firms such as Facebook and Google. Wine importers, along with other businesses that sell French products in the US, had protested the plans, saying the expected 100% tariff would cost American jobs and gut their livelihoods. The White House said Monday that Trump spoke with French President Emmanuel Macron and "agreed it is important to complete successful negotiations on the digital services tax," though did not confirm his decision to hold off on tariffs for now. Macron tweeted he had a "great discussion" with Trump.

Source: CNN January 20, 2020 23:50 UTC