US slaps French goods with 25 per cent duties in digital tax row

US Trade Representative Robert Lighthizer during a meeting in the Oval Office of the White House in Washington, US, September 16, 2019. [Reuters]

The Trump administration on Friday announced additional duties of 25 per cent 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 US 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.