US suspends proposed tariffs on French products

Washington, Jan 8 : The US Trade Representative’s (USTR) Office said that it has decided to suspend proposed tariffs on about $1.3 billion worth of French products amid a dispute over digital service taxes (DSTs).
The additional 25 per cent tariffs on certain French products were announced in July 2020 in response to France’s DST that impacts major US technology companies, and were scheduled to come into effect on Wednesday, Xinhua news agency quoted the USTR’s Office as saying in a statement issued on Thursday.
“The USTR has decided to suspend the tariffs in light of the ongoing investigation of similar DSTs adopted or under consideration in ten other jurisdictions.
Those investigations have significantly progressed, but have not yet reached a determination on possible trade actions.
“A suspension of the tariff action in the France DST investigation will promote a coordinated response in all of the ongoing DST investigations,” the statement said.
Thursday’s development came a day after the US claimed that DSTs adopted by India, Italy and Turkey discriminate against American companies without taking any tariff actions.