The US will retaliate if European officials attempt a tax raid on Silicon Valley, the tech industry has warned.

Plans by a number of countries to propose new taxes on Google, Facebook, Apple, Airbnb, Uber and Amazon are being closely monitored in Washington, with the UK and France’s new digital services tax highlighted as a barrier to trade by the United States Trade Representative in a recent report.

France’s proposed technology tax, the details of which will be known in July, have annoyed trade officials and that the US might come down hard on the country in an attempt to deter other countries from doing the same.

Jennifer McCloskey, of industry lobby group the Information Technology Industry Council (ITIC), said: “France’s step toward unilateral taxation could lead to a series of actions,” she said. “It will take time, but the US is getting more prepared to react.

“US officials are watching what bill France will pass and the terms to see whether it discriminates against US companies. There are concerns that it will have a contagion effect.”

Insiders say that trade war similar was not out of the question - although it would be a long process before retaliation occurred.