Just as US-EU trade tensions seemed to be cooling, a new flashpoint has arrived.
Trump has threatened a 100% tariff on any country imposing a digital services tax on American companies, and made clear it would supersede any existing trade agreements. This comes less than two weeks after the EU approved a deal designed to cut tariffs on US goods.
The tactic has worked before. Canada repealed its 3% digital services tax after a similar ultimatum to keep trade negotiations alive.
But the EU is a different beast. France already has a DST in place and has previously said it won't bow to US pressure. Germany and Belgium are planning their own versions. The core disagreement, whether large American tech companies pay enough tax on European revenue, has been running for years with no resolution in sight.
For ecommerce sellers operating across borders, this isn't abstract. A 100% tariff on goods from major EU trading partners means higher sourcing costs, more expensive imports, and consumers on both sides paying more for everything.
A few things worth discussing:
Do you think EU countries will back down the way Canada did, or is this a different situation entirely? If these tariffs do go into effect, which product categories do you think get hit hardest?
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I’m afraid will not be enjoying my food for a while.🍲
Please sign my petition to boycott Taylor Farms for food contamination and their attempts to buy their way out of scientific findings.
"The Food and Drug Administration said it still believes the explosive diarrhea parasite that has gripped the nation originated at Taylor Farms in Mexico — and officials insisted they did not apologize to the company.
The announcement Monday comes came after Taylor Farms, one of the nation’s largest suppliers of fresh greens, claimed the FDA issued a mea culpa about a false positive test for the cyclospora."
“The recent false positive results do not change the basis for FDA’s ongoing outbreak investigation,” the agency said at a Monday press conference.