USTR proposes 25% punitive tariff on Austrian, Indian, Italian, Spanish, Turkish and UK origin goods in response to each country’s DST; terminates investigations for Brazil, Czech Republic, EU and Indonesia
On 26 March 2021, the United States Trade Representative (USTR) announced proposed punitive tariffs of 25% on goods from Austria, India, Italy, Spain, Turkey, and the United Kingdom (UK) with regard to each country’s Digital Services Tax (DST). The proposed tariff amounts are directly tied to the amount of the DST that each country is estimated to collect from US companies. The USTR also provided a proposed list of impacted products per country and is asking for public comments due by 30 April 2021.1
Additionally, the USTR announced the termination of investigations under Section 301 of the Trade Act of 1974 (Section 301) regarding the proposed DST of Brazil, the Czech Republic, the European Union (EU),2 and Indonesia, as the countries have not adopted or have not implemented their respective DST since the initiation of the investigations.
Source EY
