The United States is stepping up pressure on other countries over negotiations for a digital services tax, opening new probes into nations planning higher duties on tech giants.
The U.S. trade representative announced Tuesday it is investigating Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey and the United Kingdom for implementing or planning to put forward new taxes on digital giants. The subject has sparked division between the U.S. and France before, and it could ultimately mean higher tariffs for these countries.
“A warning shot from USTR to signal seriousness and urgency, and to put more pressure on the OECD process to go quickly and in the US direction,” David Livingston, a senior U.S.-based analyst at Eurasia Group, told CNBC Tuesday.
“You have to recognize that a fairer share of the tax burden could help a wide range of economies better adapt to coming waves of transformation,” he said, referring to the growing shift to digital economies.
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