US President Donald Trump has ordered his trade chief to revive investigations into digital service taxes imposed by countries including France, Canada, the UK, and India. These taxes are a longstanding trade irritant for the US, with several countries levying them on sales revenue from US tech giants such as Google, Facebook, Apple, and Amazon.
Trump’s administration has launched Section 301 unfair trade practices against several of these countries, finding they discriminate against US companies. This has paved the way for retaliatory tariffs on certain imports. The White House says it will scrutinize EU tech regulations, particularly under the Digital Markets Act and Digital Services Act.
The move comes after Trump previously threatened to impose tariffs on goods from Canada and France over their digital service taxes. The US Trade Representative’s office is directed to renew investigations into digital service taxes and investigate additional countries that use these taxes to discriminate against US companies.
Digital service taxes have been a major issue in international trade, with several countries imposing them to tax revenue generated by US tech giants. These taxes have been levied on sales revenue from services such as search engines, social media, and e-commerce platforms.
The move is seen as an effort to combat the digital service taxes that foreign governments levy on American companies. Trump’s administration has launched a global corporate minimum tax and imposed tariffs on certain imports from countries that impose these taxes.
The European Union’s Digital Markets Act has been a major point of contention, with US firms accused of breaching antitrust rules. The move is expected to have significant implications for international trade and the tech industry.
Source: https://www.reuters.com/world/us/trump-says-he-will-impose-retaliatory-tariffs-digital-taxes-may-come-friday-2025-02-21