The US Government has warned of imposing 25 per cent tariffs on exports from the UK over digital services tax that the latter has levied on major technology firms.
Reportedly, the price of apparels and footwear exports from the UK to the US could increase by a quarter.
According to the list published by the US officials, beauty and furniture exports too are expected to take a hit.
It is worth mentioning here that the duties are designed to raise US $ 325 million, which is equal to estimates of how much Britain can hope to raise from taxing the UK sales of many US-based technology firms like Amazon, Google and Facebook, amongst others.
Notably, digital services tax levies a 2 per cent charge on revenues of social media services, online platforms as well as search engines.
More on this, a UK spokesperson from trade department said that the digital services tax, which was started last year, was reasonable, non-discriminatory and also temporary.
Here it is imperative to state that trade officials from both countries had met last December to talk about digital services tax and UK Government, as per media reports, had said that the tax was a temporary solution to the widely held issues with international corporate tax rules.
