USTR Considers Additional Tariffs on Goods From Six Countries to Offset Digital Service Taxes

Posted on Apr 7

04/07/21

USTR Considers Additional Tariffs on Goods From Six Countries to Offset the DST

The Office of the United States Trade Representative (USTR) is considering an additional 25% tariff on certain goods from Austria, India, Italy, Spain, Turkey, and the United Kingdom in response to the Digital Services Tax (DST) recently imposed by these six countries.

The U.S. government believes that the DST unfairly discriminate against U.S. companies in the digital space (e.g., Google, Facebook, Netflix, et al.), are inconsistent with principles of international taxation, and disproportionately burden American companies.

Targeted products include the following:

Austria — Leather articles, textile products, ceramic articles, stemware, glassware, glass fibers, copper alloys, printed circuit assemblies, and various instruments;
India — Seafood, rice, bamboo articles, corks, cigarette paper, wool yarn, bras, pearls, precious stones, precious metal articles, and furniture;
Italy — Seafood, perfumery, travel and leather goods, apparel, footwear, spectacle lenses, and optical elements;
Spain — Seafood, handbags, belts, footwear, hats, and glassware;
Turkey — Textile floor coverings, bed linen, curtains, stone/ceramic articles, precious metal articles, and imitation jewelry;
United Kingdom — Personal care/cosmetic products, apparel, footwear, ceramic articles, precious metal articles, imitation jewelry, refrigeration equipment, industrial robots, furniture, and games.

Interested parties can comment up until April 30, 2021, and comments must be submitted via the USTR’s electronic comments portal and should be placed under the appropriate docket number for each country.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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