The threat has been hovering since the end of 2019. The Trump administration announced Thursday, January 7, that the application of additional customs duties on iconic French products such as champagne, in retaliation for the French digital tax, which was to enter effective January 6, 2021 and is, ultimately, postponed.
The office of the United States Trade Representative (USTR) explains in a press release that it wants to await the results of investigations concerning digital taxes adopted or under consideration in other countries and jurisdictions. He specifies that the suspension of customs duties on France “Will promote a coordinated response”. “These investigations have progressed considerably, but have not yet resulted in any trade sanctions”, emphasizes the USTR. No timetable has been communicated.
A threat since the end of 2019
The United States has been threatening since the end of 2019 to apply additional customs duties on certain French products, including champagne, cheese, beauty products or handbags.
France recently confirmed that it would levy its tax on GAFA (Google, Amazon, Facebook and Apple) for 2020 and the Franco-American truce concluded in January 2020 for one year expired on January 6.
Among the countries targeted by these USTR investigations: India, Italy and Turkey were threatened on Wednesday with trade sanctions by the United States. Washington has estimated that the digital taxes put in place by these three countries penalize American companies.
The other countries under investigation are Austria, Brazil, the Czech Republic, Indonesia, Spain and the United Kingdom. A separate investigation targets the European Union. These investigations began in June 2020.
