March 27, 2021

Indian & World Live Breaking News Coverage And Updates

Indian & World Live Breaking News Coverage And Updates

US trade chief readies tariffs against six countries over digital taxes

Share This :



U.S. Trade Representative Katherine Tai on Friday said she was maintaining the threat of U.S. tariffs on goods from Austria, Britain, India, Italy, Spain and Turkey in retaliation for their digital services taxes.


In a statement, Tai announced that her office would proceed with steps to impose potential tariffs, including filing public notices and collecting public comments as part of investigations launched originally by the Trump administration into the taxes aimed largely at American internet and e-commerce platforms.



The taxes target in-country revenues of digital services platforms, such as Facebook, Google, and com.


The Office of the United States Trade Representative (USTR) announced the decision despite Democratic President Joe Biden’s renewed commitments to pursue a global agreement on digital services taxes through the Organization for Economic Cooperation and Development (OECD).


Tai also said that the USTR was terminating “Section 301” tariff investigations against Brazil, the Czech Republic, the European Union and Indonesia because these jurisdictions have not adopted or implemented digital services taxes that were previously under consideration. If they do adopt a digital services tax, USTR said it may open a new tariff probe.


The move is among the first negotiating tactics revealed by Tai since she took office last week. Tai said in her confirmation hearing in February that tariffs were a “legitimate tool” for U.S. trade policy.


“The United States remains committed to reaching an consensus through the OECD process on tax issues,” Tai said in a statement. “However, until such a consensus is reached, we will maintain our options under the Section 301 process, including, if necessary, the imposition of tariffs.”


The Internet Association, which represents major U.S. internet platforms, applauded the move to keep the tariff threat alive against the six countries, calling its industry a “great American export” that supports millions of jobs.


“Today’s move by USTR is an important affirmation in pushing back on these discriminatory trade barriers as the U.S. continues to work to find a viable solution at the OECD,” the trade group said in a statement.


The United States also is maintaining a more advanced tariff threat against $1.3 billion in imports of French Champagne, cosmetics, handbags and other goods in retaliation for France’s


Like the French tax, the USTR investigations into the taxes adopted by Austria, Britain, India, Italy, Spain and Turkey found that they discriminate against U.S. technology and are inconsistent with tax norms.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share This :