Clete Willems Quoted by Bloomberg on US-French Digital Tax Row
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Akin Gump public law and policy partner Clete Willems has been quoted in the Bloomberg article “U.S. Targets Soap But Not Wine in Counter to French Digital Tax.” The article reports on a new set of 25 percent tariffs imposed by the United States against French goods, worth about $1.3 billion, to counter levies against U.S. technology companies.
The products in question, according to Bloomberg, include French makeup, soap and handbags, but the tariffs are being delayed for the time being, as Paris has not yet begun collecting its digital tax. In addition, the article says, the Trump administration wants to allow more time for ongoing discussions on a global deal at the Organization for Economic Cooperation and Development.
The announcement by Washington sends a clear signal to any country considering similar measures that there are consequences to singling out American tech companies, said Willems. Still, he noted, the tariff delay provides a valuable opportunity to solve this multilaterally.
“Both sides need to compromise,” Willems said. “France needs to back away from trying to tax digital companies before all global service providers and the United States needs to stop insisting that the new rules be optional.”