Tariffs on French Handbags, Makeup Scheduled for January 2021
French champagne and cheeses will be spared if the Trump administration retaliates for a promised Digital Services Tax in France, but makeup and handbags will be hit with a 25 percent tariff, the Office of the U.S. Trade Representative announced July 10. U.S. buyers imported $1.3 billion worth of these goods in 2019, so the tariffs would be about $325 million if similar amounts were imported in 2021. The USTR said the DST is estimated to collect about $450 million from U.S. companies for the 2020 tax year.
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The announcement came on the deadline for action, but the USTR said the tariffs won't be collected until Jan. 6, 2021. If the USTR decides to move up that date, it will publish another notice.