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    Breaking News

    U.S. Targets French Cosmetics with 25% Duties

    Retaliates against France’s digital services tax.

    U.S. Targets French Cosmetics with 25% Duties
    The tax will not be introduced for 180 days, giving the U.S. and France time to broker an agreement over the levies.
    Beauty Packaging Staff07.14.20
    The Trump administration has announced additional duties of 25% on French cosmetics, handbags and other imports valued at $1.3 billion, Reuters reports. This action comes in response to France’s digital services tax.
     
    France and other countries view digital service taxes as a way to raise revenue from the local operations of big tech companies which they say profit enormously from local markets while making only limited contributions to public funds, however a recent U.S. Section 301 probe concluded that the French tax discriminates against U.S. tech firms such as Google, Facebook and Apple Inc.
     
    The United States has initiated similar Section 301 investigations of digital services taxes adopted or being considered by 10 other countries, which could result in tariffs against their goods as well.
     
    OECD talks aimed at developing a multilateral solution for taxing digital services have failed to produce any results, with negotiations complicated by the coronavirus pandemic. The Trump administration said it would hold off on implementing the tariffs for up to 180 days.
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