The U.S is targeting the U.K and other five countries in retaliatory digital-service taxes on American technology firms, according to the Wall Street Journal. The retaliatory levies will be put on hold for six months to allow for negotiations.
U.S says retaliatory tariffs were justified since American firms also face a similar treatment in countries that also include India, Austria, Italy, Turkey, and Spain.
The U.S is said to consider a multilateral solution that takes into account international taxation in the suspension of the tariffs.
U.S trade representative Katherine Tai seeks the intervention of Group of 20 economic powers, as well as international groups, in solving the stalemate
The U.S proposes 25% tariffs on target imports from the six countries amounting to almost $2 billion, with over $800 million worth of imports from the U.K.
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