Finance Minister Bruno Le Maire has warned about a possible reaction from the French government if the US proceeds in January with its planned trade sanctions over the digital services tax.
"If there are American sanctions against the French decision, which ... is the application of French law, we will immediately seek a riposte at the European level", Le Maire told the press.
The French minister previously said he would press Joe Biden, saying that European nations would be able to reach a compromise with the politician projected to be the winner of the 2020 presidential election.
After the tax on digital services targeting American tech giants was adopted last year, Washington threatened to tax imported French products such as wine and cheese up to 100%. US President Donald Trump also warned he would impose tariffs on other European countries if they adopt bills similar to the French legislation.
Le Maire, in turn, warned that the EU should be ready to impose a European tax if no global agreement with the US is reached by the end of 2020.
In December 2019, the European Parliament also addressed the dispute and called on the bloc's authorities to create its own digital tax policy, should a global deal not be reached by 2021.