Your trusted source

The United States is investigating digital services taxes being adopted or considered by Britain, Italy, Brazil, Turkey and other countries, the U.S. Trade Representative’s office said Tuesday, a move that could lead to new punitive tariffs and heighten trade tensions.

As Daily Sabah reports, such taxes are seen by several countries as a way to raise revenue from the local operations of companies including Google, Apple, Facebook, Amazon and Netflix.

Following a similar trade investigation against France last year, the Office of the United States Trade Representative (USTR) is now looking into taxes in Britain and the European Union, as well as Indonesia, Turkey and India.

“President (Donald) Trump is concerned that many of our trading partners are adopting tax schemes designed to unfairly target our companies,” U.S. Trade Representative Robert Lighthizer said in a statement. “We are prepared to take all appropriate action to defend our businesses and workers against any such discrimination.”

The announcement came after the U.S. Commerce Department said it would investigate whether imports of the metal vanadium violate national security, a sign that the Trump administration is actively pursuing new trade barriers despite the coronavirus pandemic.