Retaliatory Tariffs Over European DSTs Terminated
The Office of the U.S. Trade Representative announced Oct. 21 that the U.S. will not impose tariffs on goods from European countries over digital services taxes, as those countries have reached a settlement with the Treasury Department about the transition from DSTs to a new approach to taxing multinational firms. The agreement covers suspended tariffs on goods from Italy, Spain, France, the United Kingdom and Austria -- all those proposed tariffs will now be terminated, not just suspended.
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India and Turkey, which also have suspended tariffs under the Section 301 process, were not party to the settlement, and the 25% tariffs on their goods remain in abeyance through early December (see 2106020047). The Turkish target list covers 32 tariff classifications, about $310 million worth of imports in 2019. The Indian target list covers 26 tariff classifications, about $119 million worth of imports in 2019.