Economics
Europe Risks Trade Showdown by Defying U.S. on Digital Taxes
- U.S. pulls out of global talks on a digital services tax
- France and the EU vow to continue work on their levies
Bruno Le Maire leaves the Elysee Palace in Paris on June 17.
Photographer: Gonzalo Fuentes/AFP via Getty Images
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Transatlantic trade tensions are at risk of boiling over with several European countries vowing to move ahead with plans to tax tech companies operating within their borders in spite of a U.S. threat to retaliate with tariffs.
The U.S. said on Wednesday that it would withdraw from a long-running effort at the Organisation for Economic Cooperation and Development to develop a global tax, and has threatened retaliatory tariffs against any nations that impose levies on the digital revenue of American companies.