French and American negotiators have reached an agreement on France’s digital tax law, Reuters reported Monday.

A source close to the negotiations told the outlet that the deal made between French Finance Minister Bruno Le Maire, U.S. Treasury Secretary Steven Mnuchin Steven Terner MnuchinThe Hill's Morning Report - Sponsored by Facebook - Republicans lawmakers rebuke Trump on election On The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Vulnerable Democrats tell Pelosi COVID-19 compromise 'essential' MORE and White House economic adviser Larry Kudlow Larry KudlowMORE would have France repay companies the difference between a French tax and a planned mechanism being drawn up by the Organization for Economic Cooperation and Development.

The draft agreement will reportedly be given to President Trump Donald John TrumpFederal prosecutor speaks out, says Barr 'has brought shame' on Justice Dept. Former Pence aide: White House staffers discussed Trump refusing to leave office Progressive group buys domain name of Trump's No. 1 Supreme Court pick MORE and his French counterpart Emmanuel Macron Emmanuel Jean-Michel MacronNavalny released from hospital after suspected poisoning US-China tensions shadow United Nations meeting The US is missing an opportunity in Lebanon MORE during the Group of Seven summit Monday.

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“Trump’s adviser is OK with the proposal,” the source told Reuters. “That would be the mechanism at this stage, that’s the joint proposal.”

The new French law places a 3 percent tax on yearly revenues of technology companies that make at least 750 million euros annually and provide services to users in France, affecting companies such as Apple, Google, Facebook and Amazon.

Those companies have said the tax unfairly affects U.S. businesses and could harm their operations.

Trump has threatened to put a tariff on imported French wines in response to the tax.

"France just put a digital tax on our great American technology companies," he tweeted last month. "We will announce a substantial reciprocal action on [French President Emmanuel] Macron’s foolishness shortly. I’ve always said American wine is better than French wine!"

The European Union has promised to "respond in kind" if such a tariff is levied.