Europe Risks Trade Showdown by Defying U.S. on Digital Taxes (1)

June 18, 2020, 12:50 PM UTC

Transatlantic trade tensions are at risk of boiling over with several European countries vowing to move ahead with plans to tax tech companies operating within their borders in spite of a U.S. threat to retaliate with tariffs.

The U.S. said on Wednesday that it would withdraw from a long-running effort at the Organisation for Economic Cooperation and Development to develop a global tax, and has threatened retaliatory tariffs against any nations that impose levies on the digital revenue of American companies.

Read More: Why ‘Digital Taxes’ Are the New Trade War Flashpoint: QuickTake

Spain, Italy, France and the U.K. are ...

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