USTR Announces Tariffs Against Six Nations in Response to Digital Service Tax Investigation Findings
In response to its Section 301 investigation into digital service taxes abroad, the U.S. Trade Representative (USTR) has announced new tariffs against six nations. However, the office has temporarily suspended these duties for up to 180 days to make room for further negotiations.
The USTR began its investigation of unfair DSTs in spring of 2020. By March 2021, the office had narrowed its list of offending countries and proposed trade actions with tariff penalties up to 25 percent. The recent announcement marks its first step toward penal action that sets the stage for mediation.
The new duties target imports from six specific countries.
Businesses importing goods from any of these six nations will need to prepare accordingly for higher tariffs. While the USTR has provided a 180-day negotiation period, new duties may be applied no later than November 29, 2021, and may become active earlier if deemed necessary by the United States.
Keep up with Scarbrough for further updates on Section 301 tariffs and other international trade news.