Possible result of a trade dispute between the US and France

The office of American trade representative introduced the decision to impose additional duties on shipments of French goods totaling $1.3 billion. This is how the United States reacted to the introduction of a digital tax by the authorities of the Fifth Republic for American IT companies operating in the country.

In Washington, the demands of Paris have been considered discriminatory, and Donald Trump even called the initiative of Emmanuel Macron "a stupid act". At the same time, the contradictions between these countries, as well as the United States-European differences in general, are not limited to the trade dispute — according to experts, Europe is tired of the White House's ultimatum tactics in different areas.

Washington announced the introduction of 25% obligations on a number of items from France. The new tariffs will apply to decorative cosmetics and skin care products, soaps and bags. The raised duties will affect imports totaling $1.3 billion.

The obligations will take impact from January 6, 2021. The delay is provided for so that the parties can negotiate and are available to a compromise all through this time. The decision of the French side provoked a protest from Washington. The office of the US trade representative stated that the digital tax imposed by the Fifth Republic and other European countries is discriminatory. The US will take movement in opposition to countries which have a tax that "discriminates towards or otherwise unduly burdens American companies."

"The office is focused on countering growing protectionism in EU member States that unfairly targets US companies and takes the form of taxes on digital services or other efforts aimed at the largest us digital service providers."

TAG:

Views: 725

Damian

Author

I have been trading Forex for more than 5 years, mostly with manual and automatic trading. I set up advisors for round-the-clock automated trading. I'm sure I can help to establish your trading skills....