French President Emmanuel Macron said on Tuesday that he had had a "major discussion" with US President Donald Trump on digital tax and said the two countries would work together to avoid tariff increases.

French diplomats said Mr Macron and Mr Trump had agreed to postpone a potential tariff war until the end of the year and to continue negotiations on digital taxes at the OECD in the meantime.

"they agreed to continue negotiations until the end of this year," the source said. In the meantime, no more tariffs will be imposed. "

France decided in July to impose a digital tax on about 30 Internet giants, which is reported to be levied on global digital services with revenues of no less than 750 million euros ($847 million). And at least 25 million euros ($28 million) comes from French companies at a tax rate of 3 per cent.

In response to the French digital tax, the US had planned to impose tariffs of up to 100 per cent on French products worth $2.4 billion.

The French authorities have repeatedly stated that any international digital tax agreement reached within the OECD will immediately replace the French digital tax.