In a statement issued today, the Office of the U.S. Trade Representative announced that it has determined to suspend the tariff action in its ongoing Section 301 investigation of France’s Digital Services Tax.
As previously reported, the move to hit certain French products worth an estimated $2.4 billion with additional duties of 25% announced last July, was to have taken effect on January 6, 2020.
The USTR explained the indefinite suspension as being necessary for it to “promote a coordinated response” with respect to ten* similar investigations of digital services taxes in other countries that have “significantly progressed, but have not yet reached a determination.”
In making the decision, the USTR said it considered feedback provided during the investigation and input from advisory committees.
*Austria, Brazil, Czech Republic, EU, India, Indonesia, Italy, Spain, Turkey, and UK.