America threatens countries due to digital services taxes
United States Trade Representative Katherine Tai said she continues to threaten to impose US tariffs on goods coming from Austria, Britain, India, Italy, Spain, and Turkey in response to digital services taxes.
Tai said in a statement that her office is continuing steps to impose potential tariffs as part of the investigations originally launched by the Trump administration into digital services taxes that largely target US internet companies and e-commerce platforms.
Digital services taxes target local revenues for digital service platforms, such as Facebook, Google, and Amazon.
The USTR announced the decision despite President Biden renewing his commitment to pursue a global agreement on digital services taxation through the Organization for Economic Cooperation and Development (OECD).
Tai also said: The US Trade Representative's office was ending the “Article 301” tariff investigation against Brazil, the Czech Republic, the European Union, and Indonesia because these jurisdictions did not adopt or implement the digital services taxes that were previously under consideration.
The Office of the United States Trade Representative said: It may open a new investigation into the so-called "Article 301" tariff if Brazil, the Czech Republic, the European Union, and Indonesia adopt digital services taxes.
The threat is just one of the first negotiating tactics revealed by Tai since she took office last week.
“The United States remains committed to reaching an international consensus through the OECD process on international tax issues,” Tai said in a statement.
She added: We reserve our options, including imposing customs duties if necessary, until such a consensus is reached.
The Internet Society, which represents the main internet platforms in the United States, praised the move to keep the tariff threat alive against the six nations, describing its industry as an American export that supports millions of jobs.
The trade group said in a statement: “The move of the Office of the United States Trade Representative represents an important confirmation in repelling these discriminatory trade barriers as the United States continues to work to find a viable solution in the Organization for Economic Cooperation and Development.
The United States also maintains the threat of a more advanced tariff for $ 1.3 billion in French imports in response to the French digital tax.
Like the French tax, USTR's investigations into taxes adopted by Austria, Britain, India, Italy, Spain, and Turkey have found that they discriminate against US technology companies and conflict with international tax standards.