US suspends tariffs on French goods in digital tax dispute

Washington: Washington has suspended a plan to impose new tariffs on $1.3 billion in French products in a dispute over a digital services tax, the US Trade Representative (USTR) announced on Thursday.

The punitive levies were due to take effect Wednesday, but USTR held off citing ongoing investigations of similar measures “adopted or under consideration in 10 other jurisdictions.”

The government of President Donald Trump in July 2020 announced the decision to impose 25 percent tariffs on French handbags and cosmetics, among other items, but suspended collecting the duties until January 6.