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American Focus > Blog > Economy > Donald Trump considers tariffs to counter digital services taxes on Big Tech
Economy

Donald Trump considers tariffs to counter digital services taxes on Big Tech

Last updated: February 21, 2025 4:29 pm
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Donald Trump considers tariffs to counter digital services taxes on Big Tech
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Donald Trump is looking to escalate his global trade war by considering tariffs on countries that impose digital services taxes on American companies and tightening rules on Chinese investment in the US. In a memo signed on Friday, the president directed the US trade representative to reopen investigations into digital services taxes imposed by several EU countries, the UK, and Turkey.

Trump emphasized that his administration will not allow American companies, workers, or economic and national security interests to be jeopardized by unfair policies of foreign governments. Since returning to office, Trump has been focused on reshaping the country’s trading relationships and has imposed tariffs on various countries and sectors.

The president has long signaled his intention to address digital services taxes as part of his efforts to support American tech companies operating abroad and reform the global tax system. The memo instructs the US government to examine taxes imposed on US companies by foreign governments and any regulations that hinder the growth or intellectual property of American corporations operating overseas.

Specifically, the memo mentions digital service taxes in France and the UK, countries whose leaders are scheduled to visit Washington for talks with Trump in the near future. Trump has expressed his dissatisfaction with the treatment of American companies in other countries, particularly in the digital sector.

In addition to addressing digital services taxes, Trump also signed a memorandum aimed at increasing foreign investment in the US while safeguarding national security interests, particularly with regard to China. The memo outlines a “fast-track” process to facilitate investment from US allies and partners while restricting Chinese investments in strategic sectors like technology, critical infrastructure, healthcare, agriculture, and energy.

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The administration plans to use the Committee on Foreign Investment in the United States (Cfius) to oversee and regulate Chinese investments in sensitive US sectors. This move aligns with former president Joe Biden’s approach to China, particularly in the technology sector.

The White House also announced measures to protect farmland and real estate near military facilities and strengthen Cfius’s oversight of “greenfield” investments. Additionally, the administration will consider new restrictions on American outbound investment to China in key technology areas to prevent the misuse of capital to support China’s military-civil fusion strategy.

Overall, Trump’s actions demonstrate his commitment to protecting American interests in trade and investment while addressing concerns about foreign policies that could harm US companies and national security. The administration’s approach reflects a broader strategy to assert American economic strength and security in the global marketplace.

TAGGED:bigConsidersCounterDigitalDonaldServicesTariffsTaxesTechTrump
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