The United States announced Wednesday that it will impose 25 percent tariffs on some products from five European countries, but is still discussing taxation of digital services.
The Office of the US Trade Representative (USTR) on Wednesday announced a 25% tariff on imports from five European countries and India totaling more than $2 billion in response to taxes on digital services there. However, its implementation was immediately suspended to allow for the continuation of international tax negotiations.
According to the US Trade Representative’s office (USTR), duties on goods from the UK, Italy, Spain, Turkey, Austria and India were approved after an investigation found that the rules in place in the countries involved discriminated against US companies. The new tariffs will take effect if no common solution is found to prohibit unilateral digital service taxation.
Tariffs based on import data for 2019 are initially equal to the amount of digital taxes collected from US companies. In the case of the British, this will affect $887 million in goods (mainly clothing and cosmetics), while in Italy it will cover $386 million in clothing, handbags and optical lenses. New duties were imposed on Spanish imports worth $323 million, Turkey’s $310 million, and India and Austria $118 million and $65 million, respectively.
The affected countries, led by the French, have now imposed special taxes on online platform providers in the United States, in response the Americans have imposed punitive tariffs on billions of dollars worth of French imports. The implementation of measures by both parties was suspended at the beginning of the year as well, but in the absence of a substantive international agreement, this was more than a cease-fire, which can certainly only last until the inauguration of the new US president.
Big change is not expected tomorrow either أيض
The Americans’ latest move came shortly before G7 representatives held further talks with each other on Friday and Saturday. Taxing digital services will also be a topic at a meeting of finance ministers in London, as they try to put the agreement under the roof. Joe Biden It also plans to introduce a minimum corporate tax rate of 15%, which also aims to reduce tax evasion
United States Trade Representative, Catherine Tai In addition to announcing new tariffs, she immediately expressed hope for a multilateral agreement that would resolve digital tax contradictions and other international tax issues, including negotiations within the OECD or the G20 regulatory framework. A British government spokesman said in this regard that the digital tax it introduced was reasonable, proportionate and impartial, but temporary in nature, and would be abolished as soon as a global agreement is reached on the issue.
Reuters reported on Thursday that Canada’s finance minister is optimistic about the G7 talks and sees the issue of digital services and a minimum corporate tax rate on hand in the previous day’s statement. Canada, like Britain, takes the two issues together, say they are closely related, and like the others, promises to take unilateral action if it still fails to address matters. Of course, the agreement will not mean the immediate introduction of new tax rules: for example, the EU will need the unanimous support of all member states (and even one of the most seriously opposed). will be Hungary).
“Friendly thinker. Wannabe social media geek. Extreme student. Total troublemaker. Web evangelist. Tv advocate.”