United States suspends tariffs on goods from six countries, digital services tax investigations

The United States is suspending tariffs for up to 180 days to provide additional time to complete the ongoing multilateral negotiations.

The United States is suspending tariffs for up to 180 days.

The Office of the U.S. Trade Representative (USTR) today announced the conclusion of the one-year Section 301 investigations of digital services taxes adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom.  

According to today’s USTR release, the conclusion from the Section 301 investigations is to impose additional tariffs on certain goods from these countries. However, the United States is suspending the tariffs for up to 180 days to provide additional time to complete the ongoing multilateral negotiations on international taxation at the OECD and in the G20 process.  

The notices concerning each country were published in the Federal Register on June 7, 2021. 

Background

  • In June 2020, the USTR initiated investigations into digital services taxes adopted or under consideration in 10 jurisdictions—Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.
  • In January 2021, the USTR determined that the digital services taxes adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom discriminated against U.S. digital companies, were inconsistent with principles of international taxation, and burdened U.S. companies. Read TaxNewsFlash and TaxNewsFlash
  • In March 2021, the USTR announced that trade actions in these six investigations were postponed, and there was a public notice and comment process during which the USTR collected public comments and held seven public hearings.  The USTR also terminated the remaining four investigations—Brazil, the Czech Republic, the European Union, and Indonesia—because those jurisdictions had not implemented the digital services taxes under consideration. Read TaxNewsFlash

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