Land Rover, BMW may have to navigate U.S. tariff cost of Britain’s digital service tax

Cons. Discr. - Autos 883 Consumer Staples 562 European Union 590 Tariffs 1575 Trade Deals 855 U.S. 4297 United Kingdom 262

The U.S. government is launching trade reviews of new digital services taxes in the EU, U.K. and others which could result in the U.S. applying tariffs on goods in retaliation. Despite having one of the least strict rules, with a £25 million ($31 million) revenue threshold and a 2% tax rate, the U.K. may face the most pressure given its ongoing post-Brexit trade negotiations with the U.S. Previous U.S. action against France’s DST was set to apply tariffs of up to 100% on French luxury goods imports. In the U.K.’s case the levies may be applied to the automotive sector. Cars and light tru...

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