Finance Minister Bruno Le Maire said Wednesday he had agreed on the truce with U.S. Treasury chief Steven Mnuchin, at a meeting on the sidelines of the World Economic Forum in Davos, Switzerland.
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Le Maire said France would delay collection of the digital tax until December - through the next U.S. election cycle, potentially easing pressure for President Donald Trump as he seeks reelection.
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The U.S., in turn, will hold off imposing retaliatory tariffs that it had threatened to slap tariffs on French wine, cheese and other products.