Trump Targets Global Digital Taxes with New Tariff Directive

The order revives investigations into foreign digital service taxes and authorizes retaliatory tariffs on countries deemed to unfairly target U.S. tech firms.

• President Trump signed a memorandum directing the U.S. Trade Representative to reopen investigations into digital service taxes (DSTs) imposed by foreign governments on U.S. tech companies.
• The directive authorizes retaliatory tariffs on nations, including France, Britain, Canada, and India, that levy DSTs on companies like Google, Apple, Amazon, and Meta.
• The administration argues that these taxes unfairly discriminate against American firms, costing them over $2 billion annually, while benefiting foreign tax bases.
• Trump's order also calls for scrutiny of European Union policies, such as the Digital Markets Act and Digital Services Act, for potentially incentivizing censorship or restricting free speech by U.S. companies.
• This move follows previous U.S. actions under Section 301 during Trump's first term, which led to proposed tariffs on goods from several countries, though many were suspended for global tax negotiations.

4 Articles

The Hill CNA Benzinga