US proposes retaliatory tariffs on Indian goods in response to equalisation levy – News 24-7 Live News 24-7 Live
US proposes retaliatory tariffs on Indian goods in response to equalisation levy

US proposes retaliatory tariffs on Indian goods in response to equalisation levy

In response to India’s equalisation levy, readies tariffs against six countries over digital taxes, US proposes retaliatory tariffs of up to 25% on select Indian goods.

US Trade Representative Katherine Tai on Friday said she was maintaining the threat of US tariffs on goods from Austria, Britain, India, Italy, Spain and Turkey in retaliation for their digital services taxes.

In a statement, Tai announced that her office would proceed with steps to impose potential tariffs, including filing public notices and collecting public comments as part of investigations launched originally by the Trump administration into the taxes aimed largely at American internet companies and e-commerce platforms.

The taxes target in-country revenues of digital services platforms, such as Facebook, Google, and Amazon.com.

The Office of the United States Trade Representative (USTR) announced the decision despite Democratic President Joe Biden’s renewed commitments to pursue a global agreement on digital services taxes through the Organization for Economic Cooperation and Development (OECD).

Tai also said that the USTR was terminating “Section 301” tariff investigations against Brazil, the Czech Republic, the European Union and Indonesia because these jurisdictions have not adopted or implemented digital services taxes that were previously under consideration. If they do adopt a digital services tax, USTR said it may open a new tariff probe.

The move is among the first negotiating tactics revealed by Tai since she took office last week. Tai said in her confirmation hearing in February that tariffs were a “legitimate tool” for US trade policy.

News Source:- Business Today

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