France, US agree to extend digital tax row talks: French diplomat

The US has threatened duties on French imports of such emblematic goods as Champagne and Camembert cheese. [AFP/File / Olivier Douliery]

Presidents Emmanuel Macron and Donald Trump have agreed to extend negotiations on a dispute over a French tax on digital giants to the end of the year, postponing Washington's threat of sanctions against Paris, a French diplomatic source said Monday.

The source said the French and US leaders, who spoke on Sunday, had agreed to give negotiations a chance to "find a solution in an international framework" and avoid "a trade war that will benefit no one".