US Trade Representative Katherine Tai said she will be pushing for higher tariffs on goods from Austria, the UK, India, Italy, Spain and Turkey in response to the imposition of taxes on digital services in those countries.
The sales office is confident that the taxes adopted by Austria, Great Britain, India, Italy, Spain and Turkey “discriminate against US technology companies and do not comply with international tax regulations.”
Tai said the trade office would prepare a tariff proposal based on, among other things, non-public response.
The study of the tax situation, aimed mainly at American companies such as Facebook, Google and Amazon.com, began under the previous president. The trade office is determined to stay on track at the time, even though incumbent President Joe Biden decided to renew efforts to reach a global agreement on taxes on digital services through the Organization for Economic Cooperation and Development (OECD).
Tai also said the trade office is stopping development for Brazil, the Czech Republic, the European Union, and Indonesia because those jurisdictions have not adopted or enacted the digital services taxes they previously considered. If they do introduce a tax on digital services, development with the aim of introducing higher duties will be resumed.