Trump considers tariffs against countries taxing US tech companies
What's the story
US President Donald Trump has signed a memo directing his administration to consider tariffs on countries that impose taxes and regulations on American tech giants.
The move comes as a response to the challenges faced by companies like Meta and Google in foreign markets.
"What they're doing to us in other countries is terrible with digital," Trump said during a meeting at the Oval Office.
Tariff investigations
Trump's memo targets nations imposing digital service taxes
The memorandum directs the US Trade Representative's office to restart tariff investigations launched during Trump's first term.
These investigations target countries that impose digital service taxes, including select European Union member states, Canada, India, and others.
The administration has issued a fact sheet on this directive but has not given a timeline for these investigations.
Trade representative's view
Greer echoes Trump's stance on digital service taxes
Trump's nominee for the US Trade Representative role, Jamieson Greer, had also voiced his opposition to digital service taxes during his confirmation hearing earlier this month.
He had said that such taxes disproportionately impact American companies.
The memorandum also directs agencies to formulate strategies to combat foreign tech regulations and "unfair fines, practices, and penalties that undermine the ability of American companies to operate as intended."
Policy timeline
Trump's trade policy reviews to be completed by April
Along with the tariff investigations, Trump has also ordered a number of trade policy reviews to be completed by April 1.
This, too, is being viewed as an effort to tackle the long-standing problem of countries taxing US tech firms, a concern that has been echoed in Silicon Valley with many nations imposing digital service taxes and antitrust investigations over the last few years.
Past investigations
Trump's previous tariff probes found digital taxes discriminatory
In 2019, during Trump's first term, the US Trade Representative launched tariff investigations into digital taxes in France, Italy, Spain, and India, among others.
These probes found that such taxes were biased against US firms.
However, no action was taken by the Biden administration on this issue, drawing widespread criticism from both the tech industry and Republicans.
Trade tactics
Trump's potential action against France's digital service tax
Trump has previously used aggressive tactics to fight back against digital service taxes.
A prime example is when he threatened to impose tariffs on French wines and champagnes unless France withdrew its tax.
While French President Emmanuel Macron initially complied, France has since reintroduced a digital service tax that could once again fall under Trump's radar.
Regulatory stance
Greer warns against outsourcing regulation to other nations
Earlier this month, Greer, Trump's trade nominee, had warned that the US "should not be outsourcing our regulation to the European Union or Brazil or anyone else. They can't discriminate against us, and it won't be tolerated."
The statement highlights the administration's hardline approach against foreign regulations that are seen as discriminatory toward American companies.
Tech outreach
Silicon Valley's efforts to align with new administration
Amid these digital trade issues, Silicon Valley is making concerted efforts to fall in line with the new administration.
Trump recently revealed that he had met with Apple CEO Tim Cook, who reportedly plans to "invest hundreds of billions of dollars" in the US, a claim yet to be confirmed by Apple.
This shows an ongoing dialogue between the tech industry and the government.