In its first retaliatory action under the Joe Biden administration, the United state has proposed to impose retaliatory tariffs up to 25 percent on nearly 40 Indian products including shrimps, basmati rice, gold and silver items in response to the equalisation levy or digital services tax (DST) imposed by India on non-resident e-commerce operators.

A statement from the office of the USTR said that in January it was found that digital service taxes (DST) adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom were subject to action under Section 301 because they discriminated against US digital companies, were inconsistent with the principles of international taxation, and burdened US companies.

"The United States is committed to working with its trading partners to resolve its concerns with digital services taxes, and to addressing broader issues of international taxation," said Ambassador Katherine Tai.

"The United States remains committed to reaching an international consensus through the OECD process on international tax issues. However, until such a consensus is reached, we will maintain our options under the Section 301 process, including, if necessary, the imposition of tariffs." Among the proposed actions, the Joe Biden administration has proposed to impose retaliatory tariffs up to 25 percent on around 40 Indian products including shrimps, basmati rice, gold and silver items.

The Government of India will examine the proposed action with the stakeholders concerned and would take suitable measures keeping its trade and commercial interest of the country and overall interest of its people, according to official sources.

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