US Drops Tariff Threat in Digital Tax Transition Deal With European Countries

US Drops Tariff Threat in Digital Tax Transition Deal With European Countries
A view shows the financial and business district of La Defense and the Grande Arche building-monument in La Defense, near Paris, France on Sept. 16, 2021. Gonzalo Fuentes/Reuters
Reuters
Updated:

PARIS/WASHINGTON—The United States on Thursday withdrew its threat of tariffs against five European countries over their digital services taxes as part of a deal to manage the transition to a new global tax regime for large highly profitable corporations.

Austria, Britain, France, Italy, Spain will get to keep their digital taxes in place until a global tax agreement comes into force in 2023, under the plan jointly announced with Washington.