Business

US imposes $2 billion tariff threat against 6 countries over digital taxes


The US has threatened tariffs on $2 billion worth of goods from the UK and five other countries as they argue over how to tax tech companies, a move that risks reigniting transatlantic trade wars unless the parties resolve thorny talks on a broader international tax agreement. .

Office of the United States Trade Representative He said It was imposing tariffs but was immediately suspended for six months on Austria, India, Italy, Spain, Turkey and the United Kingdom as it concluded a series of investigations into the way countries are taxing US tech giants.

The announcement comes as rich countries are deadlocked over an update to تحديث international tax system. The Biden administration has proposed giving advanced economies powers to increase corporate taxes from US technology companies and other large multinational corporations, while imposing a global minimum corporate tax.

Governments taxing “digital services” have argued that tech companies pay too little tax on the profits they make in many countries, in part because they register them in low-tax jurisdictions like Ireland. Washington said the taxes were unfair because they disproportionately affect US companies.

US Trade Representative Catherine Taye said a six-month suspension of tariffs would allow more time for international tax talks to continue, but would allow the US to maintain “the option of imposing tariffs . . . if this is warranted in the future.”

The Biden administration in April introduced a new proposal to reform the international tax system in an attempt to break Impasse At the tax talks held at the Organization for Economic Co-operation and Development.

The US proposal would apply taxes to the global profits of the largest companies, including major US technology groups, regardless of their physical presence in a particular country. as I sought minimum The global corporate tax rate is 21 percent, although the US recently said it would accept a minimum of 15 percent.

The UK will be hit hardest by the new tariffs if no deal is reached to resolve them, as Britain’s $887m a year exports to the US are burdened with 25 per cent duties. Targeted merchandise includes perfume, makeup, clothing, jewelry and video games.

The United States has already suspended tariffs at 25 percent 1.3 billion dollars of French handbags and cosmetics, after initially threatening to hit champagne and cheese with 100 per cent import tariffs.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button