The synergy, flow and timing of the U.S. trade and economic team is just a marvel; a brilliant assembly of perfectly in-tune economic and trade professionals.
As President Trump touched down in the U.K. to attend the two-day NATO summit, United States Trade Representative Robert Lighthizer announces the completion of a Section 301 review of France’s Digital Services Tax (DST).
After determining the value of the French tax on U.S. internet services at $2.4 billion; Lighthizer announcesa 100% countervailing duty on a carefully selected $2.4 billion in French imports.
Obviously the agenda for the bilateral NATO meeting between U.S. President Trump and French President Emmanuel Macron just changed. LOL, you have to love Team USA.
Oh, but wait, wait… it gets better….
We have to remember, THIS $2.4 billion U.S. tariff against France would be on top of the $7.5 billion (per year) countervailing duty recently won from the Airbus subsidy case in the WTO…. and by law France cannot retaliate.
Oh my, President Trump strolls into the NATO bilat with Macron while holding a $10 billion legally justified countervailing tariff position. How’d ya like ‘dem grapes?
Remember those stunts Macron pulled at the G20 meeting in France when he first showed up unannounced at the hotel for lunch to discuss “climate issues“; and then invited the Iranian Foreign Minister to a goofy external bilat; trying to set-up/pressure POTUS?
Oh comeuppance thy time is now.
Washington, DC – The U.S. Trade Representative has completed the first segment of its investigation under section 301 of the Trade Act of 1974 and concluded that France’s Digital Services Tax (DST) discriminates against U.S. companies, is inconsistent with prevailing principles of international tax policy, and is unusually burdensome for affected U.S. companies.Specifically, USTR’s investigation found that the French DST discriminates against U.S. digital companies, such as Google, Apple, Facebook, and Amazon. In addition, the French DST is inconsistent with prevailing tax principles on account of its retroactivity, its application to revenue rather than income, its extraterritorial application, and its purpose of penalizing particular U.S. technology companies. A report available on USTR’s website sets out the findings of the investigation.“USTR’s decision today sends a clear signal that the United States will take action against digital tax regimes that discriminate or otherwise impose undue burdens on U.S. companies,” Ambassador Robert Lighthizer said. “Indeed, USTR is exploring whether to open Section 301 investigations into the digital services taxes of Austria, Italy, and Turkey. The USTR is focused on countering the growing protectionism of EU member states, which unfairly targets U.S. companies, whether through digital services taxes or other efforts that target leading U.S. digital services companies.”USTR is issuing a Federal Register notice explaining that, for the reasons set forth in the report, the French DST is unreasonable, discriminatory, and burdens U.S. commerce. The notice solicits comments from the public on USTR’s proposed action, which includes additional duties of up to 100 percent on certain French products.The notice also seeks comment on the option of imposing fees or restrictions on French services. The list of French products subject to potential duties includes 63 tariff subheadings with an approximate trade value of $2.4 billion. The value of any U.S. action through either duties or fees may take into account the level of harm to the U.S. economy resulting from the DST. (more)
Macron: “No matter what I try, he just keeps winning”…
May: “Oh, Emmanuel you don’t have to tell me. If you only knew”…
Macron: “What is this, this mysterious power, he has?”..
May: “I hear they call it MAGA something-or-other”…
Macron: …{{{heavy sigh}}}
May: “You need to call Justin now. He’s picking us off one by one”…