Washington — In response to French digital taxes aimed at U.S. companies, the U.S. Trade Representative is expected to respond tomorrow with tariffs on $1.3 billion on French products.
USTR concluded in its Section 301 investigation that the French tax discriminated against US firms. USTR announced these tariffs last summer, but suspended the collection on these tariffs for 180 days. France has begun collection on its national digital services tax.
The Computer and Communications Industry Association has testified and offered comments against discriminatory digital taxes and supports OECD-led global tax reform. CCIA previously filed comments with the U.S. Trade Representative in response to USTR’s query on the French digital tax.
The following can be attributed to CCIA President Matt Schruers:
“The need to resist discriminatory taxes on U.S. companies in France and other countries is urgent. Action by USTR will send a clear message that foreign digital taxes will not go without a proportionate response. It is crucial to demonstrate that the U.S. takes it seriously when one of our trading partners enacts taxes clearly targeting U.S. companies. We appreciate USTR’s ongoing efforts to ensure a level playing field, enforce international commitments, and disincentivize discriminatory actions by trading partners.
“Continued proliferation of national digital taxes like the one imposed by France undermines ongoing talks at the OECD to get an agreement on global tax reform for the digital age.”