French President Emmanuel Macron says he will extend negotiations over a new digital tax after speaking with President Trump.

Macron’s decision averts a trade war with the US after Trump threatened tariffs against French products including wine.

Amazon, Facebook and Google strongly oppose the digital tax, which France approved last year targeting large global businesses.

The French leader made the announcement of a truce on Twitter. The White House did not immediately issue a statement.

Macron tweeted: “Great discussion with @realDonaldTrump on digital tax. We will work together on a good agreement to avoid tariff escalation.”

The French digital tax applies to firms with revenue of 25 million euros in France and 750 million euros globally. Companies above the threshold must pay a 3 percent tax.

Trump had threatened to impose punishing tariffs to protect American companies. In a July tweet Trump threatened “substantial reciprocal action on Macron’s foolishness” and wrote, “I’ve always said American wine is better than French wine!”

Macron made the announcement a few hours before Trump departs the White House for the World Economic Forum in Davos, Switzerland.

The White House said the two leaders “agreed it is important to complete successful negotiations on the digital services tax.”