U.S. to impose tariffs on $2.4 billion of French goods in response to digital tax

The U.S. Trade Representative’s office says France’s digital services tax (DST) discriminates against U.S. companies and is inconsistent with existing international tax policy principles. In response to the French digital tax, the agency proposed a tariff on $2.4 billion of French goods and considered a survey of Italy, Turkey and Austria on the digital tax.

U.S. to impose tariffs on $2.4 billion of French goods in response to digital tax

The U.S. Trade Representative’s office says France’s digital services tax discriminates against U.S. companies and is inconsistent with existing international tax policy principles, an unusual burden for affected U.S. companies. Specifically, France’s DST discriminates against U.S. digital companies such as Google, Apple, Facebook and Amazon .

“Today’s decision by the U.S. Trade Representative’s office sends a clear signal that the U.S. will take action against a digital tax system that discriminates or otherwise unduly burdens U.S. companies,” said Robert Lighthizer, a until the U.S. Trade Representative’s office. In fact, the U.S. Trade Representative’s office is considering whether to launch a 301 investigation into the digital services tax in Austria, Italy and Turkey. The U.S. Trade Representative’s office focuses on fighting growing protectionism in EU member states that unfairly targetS U.S. companies, whether through a tax on digital services or other measures against leading U.S. digital service companies. ”

The U.S. Trade Representative’s office said France’s DST was unreasonable, discriminatory and burdened U.S. trade, proposing additional tariffs of up to 100 percent on certain French products, including 63 items on a list of products that could be subject to tariffs, totalling about $2.4 billion.

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