France's Macron discussed need for broad digital tax deal with Trump: Elysee Palace

France's Emmanuel Macron discussed the need for an international agreement on taxing digital service companies with US President Donald Trump in a call on Friday, the French president's office said.

The exchange - which partly centred on Iran and the upcoming summit of the G7 group of rich nations in August - came after Trump earlier said he would hit France with "substantial reciprocal action" after Paris announced a tax that will affect US technology companies.

"The president also underlined that the G7 summit would be an important opportunity to move towards universal taxation of digital activities, which is in our common interest, and which we need to keep working on in order to obtain a broad international agreement," Macron's office said.

Meanwhile, US President Donald Trump on Friday accused his French counterpart Emmanuel Macron of "foolishness" over a move to tax global tech giants, promising substantial retaliation which he hinted could target French wine.

"France just put a digital tax on our great American technology companies," Trump tweeted about the law passed this month that is set to affect US giants Google, Apple, Facebook and Amazon.