US Suspends Jewelry Tariffs by Six Months

RAPAPORT... The US has approved plans for fresh tariffs on a range of foreign goods, including jewelry, but has delayed the implementation to allow negotiations to continue, the government announced Tuesday.The new duties of up to 25% came in response to digital services taxes in Austria, India, Italy, Spain, Turkey and the UK that - according to the US - discriminated against American e-commerce companies. The punitive tariffs target 17 categories of jewelry originating in India.The suspension until November 29 will help the US reach a "multilateral" solution to its concerns about digital taxes, said Katherine Tai, the United States Trade Representative (USTR). The decision follows an investigation under Section 301, which empowers the government to act against policies of foreign entities that it considers damaging to US commerce."Today's actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future," Tai added.India's Gem & Jewellery Export Promotion Council (GJEPC) backed the delay, arguing that the extra tax burden would shift business to rival countries such as China and Mexico.Image: A US flag on the mast of a cargo ship berthed in the container terminal in Newark, New Jersey. (Shutterstock)