US Threatens Tariffs on UK Goods in Tech Tax Fight

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The US has warned that it could impose tariffs of up to 25% on a wide range of British exports in retaliation for a British tax on tech companies, a move aimed at raising $325 million, the amount that the US believes the UK will raise from US technology companies.

Such measures have been implemented in India, Austria and Spain, but measures against the EU as a whole have been dropped.

The US Section 301 aims to exert domestic political pressure within the UK and other countries to introduce these taxes.

The two countries held talks on digital services on December 4, with Britain stressing that the tariff list was procedural, not escalatory.

The tariffs are now the subject of a consultation in the US.

Ceramics from the UK are on the list, including tiles, bathroom utensils and laboratory ceramics.

The British Fashion and Textiles Association (UKFT) expressed its deep disappointment at the threat, saying the timing of the new tariffs was wrong as these industries were still suffering the effects of the Covid-19 pandemic.

The move followed claims in Europe and elsewhere that large technology companies do not pay enough tax in the countries where they operate and generate revenue.

There are signs that the Biden administration is seeking a more conciliatory relationship on trade with Britain than its predecessor.

For more information see the original story from BBC.

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