The United States plans to impose import tariffs on six countries in response to the introduction of the digital tax, which mainly affects major US technology companies such as Facebook, Amazon and Google. These are US taxes on goods from the United Kingdom, Austria, Turkey, Spain, Italy and India.
Taxes on those countries’ products cover nearly $ 1 billion. These include Turkish rugs, Austrian concert pianos and leather goods, Italian fish and tailor-made suits, gold jewelery from India, shrimp from Spain and UK cosmetics. Rates can be as high as 25 percent of the import value.
This amount is approximately equal to the amount that countries collectively levy digital taxes on American technology companies. Those companies think the tax is unfair. It’s about taxes on the revenue of search engines, online advertising and other digital activities.
Under the umbrella of the Organization for Economic Co-operation and Development (OECD), work is underway on a global standard for digital taxation for large technology groups. The United States says it is open to a global standard, but will continue to look at its own preferences in the meantime.