US suspends retaliatory measures against digital services tax

The US Trade Representative (USTR) has suspended tariffs on goods from six trading partners that were to be imposed in retaliation to discriminatory digital services tax introduced by these countries.
 
While the final determination in those digital services tax investigations is to impose additional tariffs on certain goods from these countries, the said tariffs have been suspended for up to 180 days to provide additional time to complete the ongoing multilateral negotiations on international tax at the OECD and in the G-20 process.  
 
Ambassador Katherine Tai said: “The United States is focused on finding a multilateral solution to a range of key issues related to international tax, including our concerns with digital services tax. The United States remains committed to reaching a consensus on international tax issues through the OECD and G-20 processes. Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future.”