According to a news release, the United States Trade Representative (USTR) has decided to suspend tariff actions toward French imports that had taken effect Wednesday, January 6.
The USTR had announced in July 2020 a new 25 percent duty on French cosmetic items in response to the nation’s Digital Service Tax (DST). The U.S. claimed that the DST discriminates against stateside companies. A total of 21 goods from France were slated for higher tariffs starting January 6.
However, the U.S. Trade Representative changed course just a day later. A release on Thursday, January 7 stated that the tariff action had been suspended considering ongoing investigations into France’s DST.
The USTR has stated that the suspension is indefinite, and no future date has been provided as a possibility for the tariff actions to return. Scarbrough will announce any updates as they become available.