Britain has urged US President Joe Biden not to launch a tariff war in response to the imposition of a UK digital services tax.
UK Trade Secretary Lizz Truss said the Biden administration should stop threatening to impose tariffs worth $ 325 million on goods exported from Britain.
Instead, Truss suggested the U.S. get involved in international efforts to agree on a ‘fair’ method of taxing multinational technology companies.
“We don’t believe that tariffs are the answer to solving the problem,” Truss said.
Earlier, U.S. Trade Representative Katherine Tai announced that her office was ready to impose tariffs on six countries in response to the imposition of a digital tax
Britain, who currently holds the presidency of the G7 (an international intergovernmental economic organization comprising 7 developed countries), hopes that the Biden administration will agree to a new global digital taxation system, a process led by the Organization for Economic Co -operation and Development (OECD). .
However, due to slow progress with the OECD, Britain introduced its own limited digital services tax in April 2020. It is expected to collect around £ 400 million a year by next year.
