COVID-19 Special Coverage
Trump administration to investigate EU and other countries implementing taxes on digital services

US Trade Representative (USTR) Robert Lighthizer said Tuesday that the Trump administration will investigate several countries over the implementation of taxes on digital services, which are suspected to discriminate against US companies.

Initiating a Section 301 investigation under the Trade Act of 1974 will give the USTR broad authority to respond to a foreign country’s actions. The investigation will cover the EU, India, Brazil and others.

In a press release, Lighthizer stated that US President Donald Trump is “concerned that many of our trading partners are adopting tax schemes designed to unfairly target companies,” and thus are “prepared to take all appropriate action to defend our business and workers against any such discrimination.” If found to be unfair or discriminatory, the US would be able to impose punitive tariffs on digital services.