Overview
- On September 1, Peter Navarro reposted Jack Posobiec’s message on X urging tariffs on outsourcing and foreign remote workers, equating remote services with imported goods.
- No official U.S. policy change has been announced, but the idea drew support from some American tech workers, including on the r/AmericanTechWorkers forum.
- Trade specialists and the International Chamber of Commerce warn that tariffing services is impractical because services lack a clear customs entry point and standardized classifications.
- Policy debate has therefore shifted to non-tariff options such as service levies, stricter data-localization or cybersecurity rules, and administrative pressure to reshore contracts.
- India faces particular risk given its $250+ billion IT services industry and heavy reliance on the U.S. market, even as its Ministry of External Affairs rejected Navarro’s earlier claims and the two countries remain at odds over recent U.S. goods tariffs as high as 50 percent.