U.S. suspends French tariffs over digital services tax

FILE PHOTO: A French flag is seen on a pair of socks displayed at the "Made In France" fair in Paris, November 10, 2013. REUTERS/Christian Hartmann/File Photo

WASHINGTON/PARIS (Reuters) - The United States on Thursday said it would hold off slapping tariffs on French cosmetics, handbags and other imports in retaliation for a digital services tax Washington says will harm U.S. tech firms, while it investigates similar taxes elsewhere.

The U.S. Trade Representative's office (USTR) said the 25% tariffs on imports of the French goods, which are valued at around $1.3 billion annually and were due to go into effect on Wednesday, would be suspended indefinitely.