Europe is going to give out money again! Will Amazon's commission increase?

Many sellers on the US site should still remember the grand occasion when the US government distributed money last time. In the morning, they found that there were many more orders inexplicably in the store, which really made the sellers on the US site happy.

This time, every American citizen who met the criteria received a government subsidy of $100, and American consumers lived up to expectations and really spent the money lavishly, which led to a general surge in orders at the time.

Now, the five European countries have taken the lead in resuming work in the United States, and they are also in urgent need of a large-scale stimulus plan to restart the stagnant economy. So the European Union held its first economic stimulus meeting on Friday to discuss an economic stimulus plan of up to 750 billion euros (about 841 billion U.S. dollars). The European Union will also give money to consumers!

Because the epidemic has not been fully controlled, this EU meeting was held in an online video conference mode. Europe is currently facing the most serious economic crisis since World War II. EU institutions have analyzed that the EU's overall GDP will shrink by more than 7.4% in 2020. The economic stimulus plan negotiated in this meeting will directly determine whether the European economy can be fully reopened before 2021.

Such an important plan has caused many disagreements among EU countries. Some countries believe that the 750 billion euros in the plan is too high and far exceeds the current repayment capacity of the EU. Representatives of the opposing countries are Austria, the Netherlands, Sweden and Denmark.

What's more serious is that the European Commission had proposed to impose additional taxes on US technology giants such as Amazon and Google to provide funds for the economic stimulus plan. As a result, the United States cut off the EU's idea on Wednesday, directly withdrew from the digital tax negotiations and threatened to retaliate against Europe if it imposes a digital tax again.

Since last year, Europe and the United States have been arguing about digital taxes on technology companies. For a while, it even affected us Amazon sellers. Amazon briefly raised its commission due to the implementation of digital taxes, but then canceled it because the digital tax negotiations between Europe and the United States were put on hold.

However, due to the pandemic this year, both the United States and Europe are short of money. Europe is thinking about raising some taxes from digital taxes and has restarted negotiations with the United States on digital taxes.

However, just this Wednesday, the US Treasury Department notified European countries that the two sides' digital tax negotiations have reached a deadlock and even a temporary agreement cannot be reached, and announced its withdrawal from the digital tax negotiations.

The EU is now also very angry about the US's behavior. The French Finance Minister called this behavior a "provocation" in an interview and said that France will now push forward the implementation of digital tax alone without the US's opinion.

The last time a digital tax was imposed, it was also France, and Amazon also increased the sales commission on the French site. If the EU decides to unilaterally implement a digital tax to fill the funds after the stimulus plan is introduced, Amazon will surely make the same move.

Therefore, sellers on the European site need to keep an eye on this economic meeting, which may determine some major changes on the European site. Whether it is an increase in commissions or giving money to stimulate the economy, it will have a significant impact on our business.