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USTR decision in the French digital services tax investigation

NABI and MHW are pleased that beverage alcohol is not tariffed. At least, here is on victory.

  • Tariffs of 25 percent were imposed on 21 tariff subheading of goods that total $1.3 billion in value of trade.
  • French sparkling wine and champagne is not tariffed.
  • The 21 items are handbags and cosmetics.
  • USTR delayed the implementation of the retaliatory tariffs for 180 days. Under the Trade Act of 1974, USTR may delay the effective date if it believes that progress is being made on a solution. The efforts at the OECD are an on-going multilateral effort and discussions with France are ongoing.
  • The effective date of the retaliatory tariffs is January 6, 2020.

USTR will “continue to monitor the effect of the trade action and the progress of discussions with France, and may adopt appropriate modifications.”

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