Jennifer McCloskey, vice-president of policy at the Information Technology Industry Council (ITIC) said during the hearing—called on by U.S. trade officials as part of a probe into the three per cent tax—that the “widescale application of unilateral excise taxes” in general should be prevented. ITIC is Silicon Valley’s biggest lobbying group, representing some of the U.S.’s largest tech companies, including Amazon, Google, Facebook, Apple and Twitter. (Financial Times, Wall Street Journal)
Talking point: The testimony—part of a public comment period that closes on August 26—gives weight to the Trump administration’s position that the tax should be scrapped. However, that support does not extend to Donald Trump’s threat of retaliatory tariffs. In July, the U.S. president promised “a substantial reciprocal action,” hinting at tariffs on French wine imports. ITIC said prior to the hearing that “there is a high likelihood that the cost of the tax will be passed down the supply chain.” That already seems to be happening, with Amazon reportedly raising seller fees for small- and medium-sized French businesses by three per cent. Meanwhile, Apple is also asking the Trump administration to protect it from U.S. tariffs.