US delays tariffs in ‘tech tax’ row



BBC News

The US has announced and immediately suspended tariffs on about $2bn (£1.4bn) of imports in retaliation for taxes on its tech firms.

The 25% tariffs apply to certain goods from the UK, as well as Austria, India, Italy, Spain, and Turkey.

US Trade Representative Katherine Tai said the delay would allow more time for discussions on tax.

“The US remains committed to reaching a consensus on international tax issues,” she said.

It comes after a year-long US investigation into digital services taxes put in place by the six countries, which tax tech firms on their revenues, rather than profits.

Washington previously described the taxes as “unreasonable” and “discriminatory” against American social media companies, online marketplaces and tech firms.

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