Mnuchin “made the choice that slightly than have [other countries pursuing digital services taxes] go off on their very own we’d simply say we’re now not concerned within the negotiations,” Lighthizer mentioned in response to a query from Rep. Don Beyer (D-Va.)

The Treasury Division on Wednesday afternoon tied the transfer to halt talks to the eye wanted on the coronavirus pandemic.

“America has urged a pause within the OECD talks on worldwide taxation whereas governments all over the world concentrate on responding to the COVID-19 pandemic and safely reopening their economies,” Monica Crowley, Treasury’s assistant secretary for public affairs, mentioned in an announcement.

In the meantime, Lighthizer didn’t rule out a multilateral deal.

“I believe there’s clearly room for a negotiated settlement,” he mentioned. “Should you ask me what’s the reply, the reply is we want a world regime that not solely focuses on sure sides and sure industries, however the place we usually agree how we’re going to tax folks internationally.”

Throughout a separate listening to with the Senate Finance Committee, Lighthizer added that resolving the difficulty will contain “a number of congressional motion. It entails a tax scheme that treats everybody pretty internationally.”

“I do not suppose what occurred on the OECD was the tip of a strategy of making an attempt to work out an answer. We nonetheless have to try this,” Lighthizer instructed senators on Wednesday afternoon.

A spokesperson for the OECD mentioned to not anticipate a remark in the present day, however the group’s officers are weighing whether or not to supply a response on Thursday.

Earlier this month, the Trump administration launched a sequence of investigations over digital providers taxes that might end in tariffs on international locations in Europe, Asia and South America. The transfer was extensively supported by U.S. enterprise and trade teams, however many have repeatedly expressed hope that the U.S. will resolve its points via an OECD deal to keep away from heightened world commerce tensions.

Senate Finance Chairman Chuck Grassley (R-Iowa) reiterated on Wednesday that the hopes the OECD can cleared the path to a multilateral resolution, however he helps the U.S. taking time to achieve a deal.

“Reaching an settlement with the OECD represents one of the best consequence for resolving the worldwide tax points introduced by our altering world economic system,” Grassley mentioned.

The U.S. has lengthy complained that digital providers taxes are designed in a manner that imposes an even bigger burden on U.S. corporations than home ones. In January, the Trump administration held off a risk to imposing duties on $2.four billion price of French items after Paris agreed to delay assortment of the income from its personal digital providers tax till the tip of 2020.

Rep. Kevin Brady, the highest Republican on the tax-writing Methods and Means Committee, mentioned he backed Treasury’s determination whereas pointing the finger at Europe for the breakdown.

“We’d like our companions to be extra practical about this, and I believe much more open to the U.S.’s concepts,” Brady instructed reporters Wednesday.

“There’s bipartisan considerations concerning the digital providers tax,” he mentioned. “A digital providers tax will undermine America’s tax base, which can make it harder to pay for the providers of a rising nation and an growing old inhabitants.”

He warned Europeans in opposition to unilaterally imposing taxes on American tech corporations.

“It might be an enormous mistake for them,” he mentioned.

Aaron Lorenzo and Brian Faler contributed to this report.