Washington Post and New York Times Subscription for $199
1 × $199.00 
Barron's News and Washington Post Subscription for $199 for 2 Years
1 × $199.00 Subtotal: $398.00
On Friday, President Donald Trump signed a memorandum instructing the U.S. Trade Representative to consider retaliatory tariffs over digital taxes services imposed on U.S. tech giants like Alphabet Inc. and Meta Platforms Inc. This move could intensify global trade tensions.
The Trump administration seeks to prevent foreign governments from taxing American tech companies operating internationally. The White House aims to curb what it sees as unfair tax burdens, especially in countries that impose digital taxes.
Trump denounced what he called “awful” practices toward U.S. digital companies abroad. He emphasized that details of the retaliatory measures would be unveiled soon.
The U.S. administration will also investigate if European Union and UK practices encourage the development of products that undermine free speech. Both Trump and Vice President JD Vance have raised concerns about regulations they claim stifle conservative viewpoints.
The memorandum does not specify a timeline for the implementation of tariffs on countries that have enacted digital taxes. This leaves open the possibility of a prolonged escalation.
Homebuyers faced a less competitive slower U.S. housing market as activity slowed, according to a Redfin report released on Wednesday.
This initiative builds on Trump’s longstanding opposition to digital services taxes, dating back to his first term. Previous investigations found such taxes to be discriminatory toward American companies, including those in France, Italy, Spain, and India.
Despite some countries dropping their digital tax plans, discussions on a global minimum tax for tech companies remain stalled. As of 2024, Canada implemented its digital services tax, joining over 30 other countries with similar measures.
Trump’s decision comes ahead of a visit by French President Emmanuel Macron, whose country has a digital tax targeting U.S. tech firms. France, one of the earliest adopters of digital taxes, has not agreed to withdraw it, straining ties with Washington.
Trump’s digital tax response aligns with his broader trade strategy, using tariffs to reshape global trade and encourage companies to move production to the U.S. Silicon Valley executives have supported Trump, but additional tariffs risk disrupting the global supply chains vital to these companies.
