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U.S. levies, suspends tariffs on countries with digital services taxes

U.S. levies, suspends tariffs on countries with digital services taxes
U.S. Trade Representative Katherine Tai testifies before the Senate Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies on April 28. She announced new tariffs on six countries Wednesday. File Pool Photo by Sarah Silbiger/UPI | License Photo

June 2 (UPI) -- U.S. Trade Representative Katherine Tai on Wednesday announced new tariffs on certain goods from six countries that have imposed digital services taxes.

The tariffs levied against Austria, Britain, India, Italy, Spain and Turkey, though, will be suspended for up to 180 days as the countries continue negotiations on the issue.

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"The United States is focused on finding a multilateral solution to a range of key issues related to international taxation, including our concerns with digital services taxes," Tai said.

"The United States remains committed to reaching a consensus on international tax issues through the [Organization for Economic Cooperation and Development] and G20 processes. Today's actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future."

DSTs are taxes countries place on digital services, such as advertising, sold by multinational tech companies. They're an attempt by governments to collect tax revenue from companies that may not have a physical presence in their countries.

U.S. lawmakers say DSTs target large, profitable U.S. companies. The added costs are usually passed on to the consumer.

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