Source : INDIA TODAY NEWS
US President Donald Trump on Friday threatened to impose 100% tariffs on imports from any country that levies a digital services tax on American companies, opening a new front in trade disputes with several US allies.
“Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump said in a social media post.
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Trump said the proposed tariff would override any trade agreements with the United States, whether already in force or still under negotiation.
The warning came a day after European Union countries moved to implement tariff cuts on US goods ahead of a July 4 deadline set by Trump under a broader trade agreement reached last year. The deal capped US tariffs on European exports at 15% in exchange for the EU reducing tariffs on US industrial goods to zero.
Delays in implementing those commitments had already prompted Trump to threaten the reimposition of higher tariffs on European imports, including automobiles, before EU lawmakers accelerated efforts to meet the deadline.
The latest threat also revives a longstanding dispute over digital services taxes adopted or considered by several European countries. Washington has argued that such levies unfairly target American technology companies, which dominate much of the global digital economy.
French President Emmanuel Macron recently said France would not bow to US pressure to abandon its digital services tax. France has imposed a 3% digital services tax since 2019 on revenue generated in the country by companies with annual digital-services revenue exceeding €25 million in France and €750 million ($854 million) globally. French lawmakers last year proposed raising the levy to 6%.
Earlier this month, Trump said the United States would have “no choice” but to impose 100% tariffs on French wine and champagne if France maintained its digital tax on tech giants.
The Office of the US Trade Representative has previously threatened retaliatory tariffs against France, Britain, Spain, Austria and other countries over digital taxes, arguing the measures discriminate against US-based firms.`
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SOURCE :- TIMES OF INDIA
