FILE PHOTO: An employee serves a glass of Champagne is the traditional wine of the harvest for the champagne house of Deutz in Ay, France, on September 22, 2016. REUTERS/Benoit Tessier/Photo File
WASHINGTON (Reuters) – The U.S. government said Monday it may slap punitive duties of up to 100%, to $2.4 billion in us imports of French Champagne, hand-bags, milk, cheese and other products, and after that in France, the new electronic services of the tax could hurt U.S. tech companies.
The us Trade Representative office, said the “Section 301” studies have shown that the French tax was “contrary to the prevailing principles of international tax policy, and it is extremely stressful for the affected U.S. companies, including the Alphabet, Inc.’ s Google’s (GOOGL.O), Facebook Inc (FB.O) and Apple Inc (AAPL.And Amazon.com Inc. (AMZN.D).
U.S. trade representative Robert Lighthizer, said the U.S. government was also to investigate whether or not to open a similar research in the electronic services of the tax payable in Austria, Italy, and Turkey.
The USTR is directed to the control of the growing protectionism of the EU member states, which unfairly targets AMERICAN companies, or through, the services, the taxes and other efforts are leading US digital services in the business.”
The trade agency said it would gather public comments on the proposed tariff list, Jan. 14, and the holding of a public hearing on Jan. 7. It does not specify a date, in the case of the 100% duties.
The list of targets for a number of products which have been saved up to 25% of the rates imposed by the United States over alleged aircraft subsidies, including in the case of sparkling wines, handbags and make-up preparations – product, which hit the French luxury goods giant LVMH (LVMH.PA) and cosmetics maker L’oreal (OREP.DAD) is hard.
The findings, to win the favor of the US lawmakers and the AMERICAN tech industry.
“The French services, the tax is unfair, protectionist and discriminatory,” Senators Charles Grassley and Ron Wyden, the top Republican and Democrat respectively of the Senate Finance Committee, said in a statement.
A spokeswoman for the French embassy in Washington could not immediately be reached for comment.
Reporting by Andrea Shalal And David Lawder; Editing by Leslie Adler and Lisa Shumaker