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The Us Announced 25% Of Duties On Goods From France Worth $1.3 Billion

The Us Announced 25% Of Duties On Goods From France Worth $1.3 Billion

The US authorities intend to impose additional duties of 25% on goods from France worth about $ 1.3 billion. The corresponding notification was distributed on Friday by the office of the United States representative for trade negotiations.

This decision, which will take effect on January 6, 2021, was made by Washington in connection with the intention of Paris to impose a tax on companies providing digital services, including American ones.

"This notification declares the firm intention of the office of the US representative in the trade negotiations to take measures in the form of [imposing] additional duties of 25% on goods from France. The US Representative in the trade negotiations also decided to suspend [the application of] additional duties for 180 days, which will provide additional time for bilateral and multilateral negotiations that can lead to an acceptable resolution of the issue," the message reads. The list of products that Washington is ready to impose duties includes various names of cosmetic products, as well as bags.

The document notes that "[US authorities] will continue to monitor the impact of trade measures and progress in negotiations with France and may approve the relevant amendments." Washington also reserves the right to start applying duties earlier than 180 days if it deems it necessary.

The French Senate (the upper house of Parliament) previously passed a bill to tax the largest companies that provide digital services. This tax applies to the profits of Internet giants received after January 1, 2019, and will amount to 3% of the total turnover in France. It applies to all companies whose turnover exceeds €750 million in the world and €25 million in France, as well as companies whose sphere of activity covers online advertising, online Commerce, or the work of information aggregators.

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