United States launches trade probe into digital taxes, plowing ground for new tariffs


Lighthizer at a meeting in Mexico City, Mexico in December 2019. — Reuters

WASHINGTON: The United States is investigating digital services taxes being adopted or considered by Britain, Italy, Brazil and other countries, the US Trade Representative's office said on June 2, a move that could lead to new punitive tariffs and heighten trade tensions.

Such taxes are seen by several countries as a way to raise revenue from the local operations of companies including Alphabet Inc's Google and Facebook Inc.

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