The US has suspended talks with European nations on the introduction of a global digital tax for technology companies and has threatened retaliation if they promote their taxes, Financial Times reported referring to a letter of the US Treasury Secretary Steven Mnuchin.

Discussions on this subject have reached an 'impasse,' Mnuchin noted in a letter

The US, according to Mnuchin, could not even agree on an interim basis on changes to global taxation law that would affect leading US digital companies. 

“Attempting to rush such difficult negotiations is a distraction from far more important matters,” Mnuchin noted. “This is a time when governments around the world should focus their attention on dealing with the economic issues resulting from Covid-19.”

The letter was sent to Rishi Sunak, the UK chancellor of the exchequer, French economy minister Bruno Le Maire and the finance ministers of Italy and Spain and he called on for talks to be suspended. 

“The United States remains opposed to digital services taxes and similar unilateral measures,” Mnuchin added. “As we have repeatedly said, if countries choose to collect or adopt such taxes, the United States will respond with appropriate commensurate measures.”

A new round of talks is possible, according to the head of the US Treasury, by the end of the year. According to the edition, representatives of European states intend to soon send Washington a joint return message.