From January 6, 2021, a number of French products will be subject to 25% customs duties on imports into the United States, according to a statement by the country’s chief trade representative.Tensions between the two countries have been building for some time, catalyzed by personal animosity between the leaders of the two countries. In this case, the digital sales tax imposed by the French legislators acts as a dividing line.
Although this tax should generally be seen as a sensible approach to ensure that companies pay fair taxes in the countries where they make profits, the White House argues that US companies should be exempt from paying taxes in international markets,
The case started on July 10, 2019, when the chief trade representative of the United States publicly announced the possibility of imposing a duty on certain French goods, especially wine and cheese. “The entry into force of this unilateral tax on digital services is a worrying precedent that is holding back progress toward stable and sustainable international tax policies and will disproportionately affect US-based companies,” said Jennifer McCloskey of the US IT Industry Council. .