On February 21, 2025, President Trump directed the United States Trade Representative to determine whether to renew the Section 301 investigations of the digital services taxes of France, Austria, Italy, Spain, Turkey, and the United Kingdom. If a positive determination is made, USTR will take “all appropriate and feasible action in response to those DSTs.”
USTR was also directed to take a number of other actions, which you can read details on in this Trade Report article.
ST&R offers a three-pronged strategy to avoid, mitigate, and/or recover tariffs on imported goods. Click here for more information.
History of These Digital Service Tax Investigations
On June 2, 2020 the Trump administration announced Section 301 investigations into digital services taxes adopted or under consideration by Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.
In March 2021, USTR terminated the investigations of Brazil, the Czech Republic, the European Union, and Indonesia because those jurisdictions did not implement the DSTs under consideration.
In January 2021, USTR found that the Digital Service Taxes adopted by India, Italy, Turkey, Austria, France, Spain and the United Kingdom each discriminate against US companies and burden or restrict US commerce. Although USTR announced their intent to impose additional tariffs, those tariffs were suspended to provide additional time to complete ongoing multilateral negotiations.
On October 21, 2021, the US reached a deal with Austria, France, Italy, Spain and the United Kingdom. These countries agreed to withdraw their national digital services taxes and the US agreed to terminate the currently-suspended additional tariffs on goods from those countries. The Section 301 Digital Services Tax investigations of Austria, France, Italy, Spain and the United Kingdom were terminated on November 18, 2021.
In November 2021, the US reached the same deal as above with with Turkey and India and terminated those Section 301 trade actions in December 2022.
Official Documents
- Memorandum: Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties (February 21, 2025)
- Fact Sheet: President Donald J. Trump Issues Directive to Prevent the Unfair Exploitation of American Innovation (February 21, 2025)
- Termination of Action in the Digital Services Tax Investigation of India and Further Monitoring (December 2, 2022)
- Termination of Action in Section 301 Digital Services Tax Investigation of Turkey and Further Monitoring (December 1, 2022)
- USTR Welcomes Agreement with India on Digital Services Taxes (November 24, 2021)
- USTR Welcomes Agreement with Turkey on Digital Services Taxes (November 22, 2021)
- Termination of Actions in the Section 301 Digital Services Tax Investigations of Austria, France, Italy, Spain, and the United Kingdom and Further Monitoring (November 18, 2021)
- Joint Statement from the United States, Austria, France, Italy, Spain and the United Kingdom, Regarding a Compromise on a Transitional Approach to Existing Unilateral Measures During the Interim Period Before Pillar 1 is in Effect (October 21, 2021)
- 130 Countries and Jurisdictions Join Bold New Framework for International Tax Reform (OECD, July 1, 2021)
- USTR Announces, and Immediately Suspends, Tariffs in Section 301 Digital Services Taxes Investigations (June 2, 2021)
- Notice of Action in the Section 301 Investigation of Austria's Digital Services Tax (June 2, 2021)
- Notice of Action in the Section 301 Investigation of India's Digital Services Tax (June 2, 2021)
- Notice of Action in the Section 301 Investigation of Italy's Digital Services Tax (June 2, 2021)
- Notice of Action in the Section 301 Investigation of Spain's Digital Services Tax (June 2, 2021)
- Notice of Action in the Section 301 Investigation of Turkey's Digital Services Tax (June 2, 2021)
- Notice of Action in the Section 301 Investigation of the United Kingdom's Digital Services Tax (June 2, 2021)
- USTR 2021 Special 301 Report (April 30, 2021)
- Proposed Action in Section 301 Investigation of Austria's Digital Services Tax (March 31, 2021)
- Proposed Action in Section 301 Investigation of India's Digital Services Tax (March 31, 2021)
- Proposed Action in Section 301 Investigation of Italy's Digital Services Tax (March 31, 2021)
- Proposed Action in Section 301 Investigation of Spain's Digital Services Tax (March 31, 2021)
- Proposed Action in Section 301 Investigation of Turkey's Digital Services Tax (March 31, 2021)
- Proposed Action in Section 301 Investigation of the United Kingdom's Digital Services Tax (March 31, 2021)
- Termination of Section 301 Digital Services Tax Investigations of Brazil, the Czech Republic, the European Union, and Indonesia (March 31, 2021)
- Notice of Determination Pursuant to Section 301: Spain's Digital Services Tax (January 21, 2021)
- Notice of Determination Pursuant to Section 301: Austria's Digital Services Tax (January 21, 2021)
- Notice of Determination Pursuant to Section 301: the United Kingdom's Digital Services Tax (January 21, 2021)
- USTR Releases Findings and Updates in DST Investigations (January 14, 2021)
- Notice of Determination Pursuant to Section 301: India's Digital Services Tax (January 12, 2021)
- Notice of Determination Pursuant to Section 301: Italy's Digital Services Tax (January 12, 2021)
- Notice of Determination Pursuant to Section 301: Turkey's Digital Services Tax (January 12, 2021)
- USTR Releases Findings in DST Investigations (January 6, 2021)
- Initiation of Section 301 Investigations of Digital Services Taxes (June 5, 2020)