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    Breaking News

    A US-France Trade War?

    Potential tariffs on cosmetics and fragrances.

    A US-France Trade War?
    Sacre bleu! Will a US tariff be placed on YSL and other French cosmetic houses?
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    Happi Staff07.11.20
    The US is involved in so many disputes around the world these days, what's one more? On Friday, the Trump Administration warned it would impose tariffs on $1.3 billion of French imports if Paris doesn’t back down from plans to impose a new digital-services tax that would fall heavily on US technology companies.

    But officials note that there is plenty of time for negotiations. The proposed tariffs on certain cosmetics and handbags won't take effect until Jan. 6, 2021, according to the Office of the US Trade Representative.

    The USTR said in a filing Friday that the tariffs would be set at a rate of 25%. The move comes after a USTR investigation concluded that France’s digital services tax was designed to discriminate against US digital companies. French legislators had called the proposal a “GAFA tax” because it would fall heavily on Google, Apple, Facebook and Amazon.

    The Trump Administration said it had mulled a 100% tariff rate and was considering action against other French imports such as wine and cheese.
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