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The U.S. A announces that it will impose retaliatory tariffs on 6 countries

2021-06-04
The Office of the United States Trade Representative (USTR) announced on the 2nd local time that it would impose 25% tariffs on goods worth more than 2 billion U.S. dollars in six countries as a countermeasure for these countries to impose digital service taxes on US Internet companies. USTR subsequently stated that it would postpone the implementation of the taxation.


USTR said that the six countries are Britain, Italy, Spain, Turkey, India and Austria. The results of the US "301 Survey" of these countries show that these countries "discriminate" American companies when they impose digital service taxes. Therefore, the United States will impose taxes on goods worth more than 2 billion U.S. dollars in these countries.


Among them, a 25% tariff will be imposed on goods valued at US$887 million imported from the UK, including clothes, shoes, cosmetics, etc. Tariffs of 25% will be imposed on goods valued at US$386 million, US$323 million, US$310 million, US$118 million and US$65 million respectively from Italy, Spain, Turkey, India and Austria.


USTR officials stated that the total amount of these tariffs is equal to the total amount of digital service taxes levied on US companies by the six countries in 2019.


USTR immediately stated after issuing the tax declaration that the policy will be postponed for an additional 180 days.


US Trade Representative Katherine Tai said that this move will reserve the option for the United States to impose tariffs and allow more time to negotiate and negotiate with other countries.


In June last year, the Trump administration launched an investigation into the collection of digital service taxes from global Internet companies in 10 countries and regions. In January this year, the results of the USTR survey revealed that six of these countries had “discriminatory behaviors” against American companies when they imposed digital service taxes.


 
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