|Treasury officials: Talks to remove digital taxes should end tariff risks|
Negotiations over the withdrawal of existing digital services taxes after a landmark corporate tax deal should ultimately end the threat of tariff wars between the United States and several countries over the levies, U.S. Treasury officials said. In the OECD tax agreement, 136 countries last Friday agreed to adopt a 15% minimum corporate tax and partly re-allocate taxing rights for large, highly profitable companies to countries where they sell products and services. In return, the deal requires all countries to remove unilateral digital services taxes (DST) that largely targeted U.S. technology giants. The U.S. Trade representative's office has readied tariffs against imports from France, Britain, Italy, Spain, Austria, India and Turkey over their digital services taxes, but has suspended them to allow for negotiations on a global tax deal to eliminate them. Proposed tariffs on French goods would slap 25% duties on cosmetics, handbags and other imports valued at some $1.3bn, while Paris has threatened retaliation of its own. One of the Treasury officials said the department was coordinating closely with the U.S. Trade Representative's Office on the digital tariff removals.