U. S. SUSP ENDS FRENCH TARIFFS OVER DIGITAL SERVICES TAX

The United States has indefinitely suspended 25 per cent tariffs on French cosmetics, handbags and other imports it had planned in retaliation for a digital services tax Washington says will harm U.S. tech firms, as it investigates similar taxes elsewhere. The U.S. Trade Representative’s office (USTR) said Thursday the 25 per cent tariffs on imports of the French goods, which are valued at around US$1.3 billion annually, would be suspended indefinitely. Washington announced the tariffs in July after concluding a French digital services tax (DST) would harm firms such as Google, Facebook, Apple and Amazon. The USTR said suspending the action, which had been due to come into force Jan. 6, will allow it to pursue a coordinated response in 10 investigations involving other countries, including India, Italy, Britain and Turkey.