The world is heading for a digital tax war, even if hostilities are on hold

Pressure from the Trump administration has deterred France from going after the big tech companies, writes Ben Chapman. But the UK is holding firm – for now

Many countries are on a collision course with Trump (AFP/Getty)

The question of how to stop big tech firms slashing billions off their tax bills is threatening to escalate into a full-blown tax war.

There are few easy ways forward, despite the fact that some form of de​tente between two of the potential belligerents, America and France, appeared to have been reached on Thursday.

In the face of US pressure, French finance minister Bruno Le Maire agreed to hold fire on France’s tax on large tech company revenues which was aimed squarely at the likes of Google and Amazon.