Us suspends digital tax negotiations and threatens to retaliate or trigger trade war between us and Europe

 Us suspends digital tax negotiations and threatens to retaliate or trigger trade war between us and Europe

The move immediately aroused strong dissatisfaction among European countries. The OECD also warned that the US action might trigger a new round of trade war.

The U.S. sent a breakup letter when the negotiation was about to reach an agreement

French Minister of economy and finance le Maire said that when the parties are about to reach an agreement on digital tax negotiations,

u3002 When the United States treats the British, Italians, Spaniards, and us French as allies, it says in threatening words, if you dont do that, we will punish you.

Paul gentiloni, the European Commissions Economic Affairs Commissioner, also made a statement, expressing deep regret for the US move. Gentiloni also said that the European Commission hopes to reach a comprehensive plan on digital tax and supports relevant negotiations under the framework of OECD. but

If the negotiations fail to reach a conclusion this year, the EU will propose its own plan for the digital tax

u3002 At the same time, the Commission will unite with all members who have made progress in the collection of digital taxes and will respond in a unified way if necessary.

The US and Europe are rapidly moving towards a trade war

Media reports in Europe and the United States focused on two important statements of the suspension of digital tax negotiations in the United States: first, the United States believes that digital tax will affect the leading position of American Internet enterprises; second, the United States threatens to implement tariff retaliation against countries that continue to promote digital tax.

According to an article published by, Europe and the United States are rapidly moving towards a trade war, the focus of the debate is who has the right to tax digital enterprises such as Google, Facebook and Amazon..

At the time of the US suspension of negotiations, EU and French officials stressed their continued support for the digital tax plan, which could lead to us retaliation.

Citing expert analysis, CNBC said that real politics has penetrated into the field of digital trade. The United States, the most important participant in the digital tax negotiations, is no longer participating in discussions on Multilateral Governance, while threatening to take retaliatory measures to prevent other countries from advancing their own plans.

Screenshot of US consumer news and business channel

The dispute of digital tax between America and Europe has a long history

In March 2018, the European Commission announced a legislative proposal to adjust the tax rules for large Internet companies. On the issue of digital tax, France, Britain, Italy and Spain have been more active.

In France, for example, the French Senate approved a 3% digital service tax on multinational Internet enterprises in July 2019, and the United States immediately put pressure on it - announced the launch of 301 investigation on Frances digital tax that month.

The so-called 301 investigation originates from section 301 of the U.S. trade act of 1974. The clause authorizes the U.S. trade representative to initiate an investigation into the so-called unreasonable or unfair trade practices of other countries, and to recommend unilateral sanctions to the president of the United States after the investigation.

Apart from France, on June 2 this year, the office of the United States trade representative announced that it would launch 301 investigation on 10 trading partners that have implemented or are considering digital tax, including the European Union, the United Kingdom, Austria, the Czech Republic, Italy, Spain, Turkey, Brazil, India and Indonesia. It is also seen as a precursor and preparation for the us to suspend the digital tax negotiations.

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Jiang Yuechun, director of the Institute of world economy, Chinese Academy of International Studies

In an interview with global information broadcasting, the analysis found that according to the idea of Americans, if the negotiation fails to make progress according to the requirements of the United States, it is equivalent to no progress. Americans think they dont achieve their goals, so they will quit the negotiation.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u6056789,container:ssp_ 6056789, async:true }The French finance minister denounces Washingtons interruption of the digital tax negotiations: This is a kind of provocative negotiation breakdown. The impact of the difficult production of the digital tax negotiations between the United States and the European Union. Source: CCTV news client responsible editor: Shi Jianlei_ NBJ11331