Spanish Municipalities Unite Against US Tariff Rise

The Spanish city of Elche has become the country’s epicentre for the uncertainty and malaise that exists in its footwear sector, following US president Joe Biden’s announcement of an increase in tariffs on footwear. The footwear tariff is set to increase from 10-12.5% to 35-37.5%, and is seen as punishment for the country’s Google tax. Google has told customers that it will raise the rates for advertisements on its French and Spanish platforms by two percent from May to help offset the impact of a digital tax on profits. France has collected the levy since 2019, and Spain since this year, under pressure from voters to make US tech giants pay a greater share of taxes in countries where they operate. The ad rate increase is to “cover a part of the cost of conforming to laws concerning taxes on digital services in France and Spain,” the internet giant said.