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USTR Imposes, Suspends Section 301 DST Tariffs on 6 Countries

The Office of the U.S. Trade Representative concluded its one-year Section 301 investigation into the digital services tax policies of Austria, India, Italy, Spain, Turkey and U.K. by imposing and immediately suspending remedial tariffs against those countries, said the agency…

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Wednesday. Putting the tariffs on hold for up to 180 days will give more time to complete the ongoing multilateral negotiations on international taxation at the Organisation for Economic Co-operation and Development and through the G20 process, it said. The U.S. “remains committed to reaching a consensus on international tax issues through the OECD and G20 processes,” said USTR Katherine Tai. “Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future.” DSTs "undercut significant activity in multilateral negotiations and further fragment the international tax system,” said Information Technology Industry Council CEO Jason Oxman. ITI encourages all governments to "quickly withdraw" DSTs "and double down on their work to realize a multilateral, consensus-based agreement" through the OECD and G20, he said. The Computer & Communications Industry Association “welcomes USTR’s actions in the Section 301 investigations that show the continued commitment of the U.S. to the ongoing negotiations, while making clear that tariffs remain an option if discriminatory taxes continue,” said Policy Counsel Rachael Stelly.