USTR Proposes Higher Tariffs on Nations Imposing Digital Services Taxes 

The Office of the U.S. Trade Representative has proposed additional tariffs up to 25 percent on goods from six nations: Turkey, Spain, Italy, India, Austria, and the United Kingdom.

A Section 301 investigation into the unfair application of digital services taxes (DSTs) against American businesses has identified these six nations. In response, the USTR is pushing for higher duties on imports from the six parties.

According to experts, DSTs are imposed on digital services companies with high revenue. These taxes are typically applied against companies involved in social media, online marketplaces, and other tech-based enterprises. Unfortunately, most multinational digital service providers headquarter in the United States.

Per reports, the USTR alleges that the use of DSTs often unfairly targets American tech corporations to dampen their competitiveness. Thus, the Section 301 investigation.

The Biden administration has published its findings, stating that the six nations have placed unreasonable burden on American commerce by way of DSTs. The USTR is set to hold hearings on the matter over the first week of May.

Should the additional tariffs go into effect, hundreds of millions of dollars of goods from each nation will be affected. From ceramics and furniture in the UK to handbags and glassware from Spain, a range of products could see higher tariffs in the coming months.

Scarbrough International is closely monitoring this situation and will share further developments. Contact us or follow our newsletter for updates.