The United States and France reached an agreement on Wednesday on a global digital tax framework to avoid a transatlantic trade war, French Finance Minister Bruno Lemerre said. American technology stocks rose in the short term, Alphabet Inc-CL CClass A shares are up 0.63%, Apple IncNow it is up 0.6% on Facebook.Now it's up 0.14%, Amazon.Com Inc.It is now down 0.16%.

During a meeting with U.S. Treasury Secretary Steven Steven Mnuchin at the World Economic Forum in Davos, Lemerre agreed to postpone the tax on multinational digital companies until the end of 2020. In exchange, the US will avoid imposing punitive tariffs on French goods after it threatened to retaliate.

"We have now agreed on a common global framework," Lemerre told reporters at a news conference in Davos, Switzerland. "

The agreement partly alleviates the escalating threat between the United States and the European Union. The US is preparing to impose tariffs of up to 100 per cent on $2.4 billion worth of French iconic goods, including sparkling wine and cheese. Mr Lemerre has said the EU would adopt retaliatory tariffs "quickly and forcefully". (Sina US stock Zhang Ning)