This tax is about to be abolished! Amazon sellers are just a false alarm

A new turn in the EU-US negotiations

At the just-concluded G7 summit, France and the United States reached a new "compromise plan" - the United States will cancel its plan to impose a 25% punitive tariff on EU cars and auto parts exported to the United States in November this year.

At the same time, France will cancel the 3% digital tax on US companies that has already been implemented and refund the taxes already collected to the relevant companies.

France is about to cancel the 3% digital tax, and Amazon will also cancel the increase in commission rates. Now is the time for French sellers to celebrate a little, but we should also think about what the results of this negotiation mean for the overall e-commerce environment.

At first glance, this conflict between Europe and the United States seemed like the two sides had just shown their fangs to each other, tested each other and then withdrew their troops, but in fact the two sides only reached a verbal leaders' statement and did not issue a formal joint communiqué after the end of the G7.

Such an ambiguous attitude has never appeared in the history of the G7 summit. Why did Trump, who has always been tough, send out signals of easing trade frictions between Europe and the United States before and after the G7?

US stance on trade conflict

If we view the negotiations between the United States, or Trump, and the European Union as a delaying tactic, everything will make sense.

The recent period should be the most difficult since Trump took office. The trade war he initiated with the whole world has made no progress. China and Europe are not submissive and are not afraid of his hegemony at all. They even hit back hard, causing financial market turmoil in the United States, and the inverted yield curve of US debt shows signs of economic recession. Americans are now complaining about Trump, and his approval rating has fallen to a new low.

Now Trump urgently needs some results to deal with the growing opposition and anger at home, so he has to make some compromises in the recent trade negotiations to send a signal of reconciliation.

So whether it is with the EU or China, he will try to reach a settlement agreement with one of them first and put more pressure on the other. At present, although the G7 meeting has released some signals of easing tensions with the EU, in fact, as I said above, Trump has not made any formal commitments or measures.

In addition, the EU has a complex structure, trade agreements are more time-consuming and labor-intensive, and even Europe and the United States do not have an effective way to reach an agreement. Therefore, the possibility of Europe and the United States reaching an agreement in the near future is very small.

In other words, at the high-level consultations between China and the United States in early September, the United States will also make some concessions to us, and we are very likely to reach a trade agreement with the United States before the European Union.

There is not much time left for Trump, and the severe economic situation in the United States is even helping us force Trump to compromise.

Reconciliation between our two sides is just around the corner. Perhaps, just like France's refund of collected digital taxes, the United States may make certain compensation for products that are subject to tariffs today, September 1st. Scan the QR code to contact me to get a list of additional tariffs for September and December!

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