U.S. slaps French goods with 25% duties in digital tax row

The Trump administration  announced additional duties of 25% on French cosmetics, handbags and other imports valued at $1.3 billion in response to France’s digital services tax, but would hold off on implementing the move for up to 180 days.

The U.S. Trade Representative’s office said delaying the start of the tariffs would allow further time to resolve the issue, including through discussions in the Organisation for Economic Co-operation and Development (OECD). The decision also reflected France’s agreement to defer collection of its 3% tax on digital services.

The U.S. move follows a U.S. Section 301 probe, which concluded the French tax discriminates against U.S. tech firms such as Google, Facebook and Apple Inc.