New Tariffs on French Products?

The U.S. top trade representative, Robert Lighthizer, continues to support the administration’s stance on trade policy and supporting the tariffs on EU products. Today is the date agreed for the review and announcement of sanctions against France based on the dispute over the announced digital service tax to be imposed on USA tech companies operating in France. The potential for tariffs as high as 100% on targeted French products, including beverage alcohol, is very real, but the expectation is that any sanctions imposed will be suspended.

Lighthizer stated yesterday in a  virtual session hosted by London think tank, Chatham House: “We’re going to announce that we’re going to be taking certain sanctions against France, suspending them like they’re suspending collection of the taxes right now.”

The expectation is that the administration will target approximately $500 million worth of French products, a figure that corresponds to what France is predicted to collect in DST tax.  

We will keep you posted as news is announced.