financetom
Business
financetom
/
Business
/
Trump orders trade chief to revive tariff retaliation against digital taxes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Trump orders trade chief to revive tariff retaliation against digital taxes
Feb 21, 2025 4:52 PM

WASHINGTON (Reuters) -President Donald Trump on Friday ordered his trade chief to revive investigations aimed at imposing tariffs on imports from countries that levy digital service taxes on U.S. technology companies.

A White House official, providing details of the order, said Trump was directing his administration to consider responsive actions like tariffs "to combat the digital service taxes (DSTs), fines, practices, and policies that foreign governments levy on American companies."

"President Trump will not allow foreign governments to appropriate America's tax base for their own benefit," the official said.

The memo directs the U.S. Trade Representative's office to renew digital service taxes investigations that were initiated during Trump's first term, and investigate any additional countries that use a digital tax "to discriminate against U.S. companies," according to a White House fact sheet.

The digital service taxes aimed at dominant U.S. tech giants including Alphabet's Google, Meta's Facebook, Apple and Amazon have been a longstanding trade irritant for multiple U.S. administrations.

Britain, France, Italy, Spain, Turkey, India, Austria and Canada have levied the taxes on sales revenue by these and other digital services providers within their borders.

During Trump's first term, USTR launched Section 301 unfair trade practices against several of these countries, finding they discriminated against U.S. companies, paving the way for retaliatory tariffs on certain imports.

"What they're doing to us in other countries is terrible with digital," Trump told reporters ahead of his memo signing.

He previewed the action last week, saying that he would impose tariffs on goods from Canada and France over their digital service taxes. A White House fact sheet released at the time said each had collected over $500 million annually in DST revenues, with global levies at over $2 billion.

Trump's memo also directs his administration to review whether any policy in the European Union or Britain "incentivizes U.S. companies to develop or use products and technology in ways that undermine free speech or foster censorship."

The White House fact sheet said that it will especially scrutinize how U.S. firms are treated under the EU's Digital Markets Act and Digital Services Act.

Sources told Reuters earlier on Friday that Google is set to be charged with breaching the Digital Markets Act after proposed changes to its search results failed to address the EU antitrust regulator's concerns and those of its rivals.

BATON PASS

After Trump's first administration launched the digital tax probes, former President Joe Biden's trade chief, Katherine Tai, in 2021 followed up by announcing 25% tariffs on over $2 billion worth of imports from six countries, but immediately suspended them to allow negotiations on a global tax deal to continue.

Those negotiations led to a 15% global corporate minimum tax that the U.S. Congress never ratified. Talks on a second component, meant to create an alternative to the digital taxes, have largely ground to a halt with no agreement.

Trump on his first day in office effectively pulled the U.S. out of the global tax arrangement with nearly 140 countries, declaring that the 15% global minimum tax has "no force or effect in the United States" and ordering the U.S. Treasury to prepare options for "protective measures."

Trump did not disclose how high a tariff rate he would charge on the retaliatory duties, nor the value of goods targeted.

In 2021, Tai announced that USTR would impose 25% tariffs on about $887 million worth of goods from Britain, including clothing, footwear and cosmetics, and on about $386 million worth of goods from Italy, including clothing, handbags and optical lenses.

USTR said at the time it would impose tariffs on goods worth $323 million from Spain, $310 million from Turkey, $118 million from India and $65 million from Austria. USTR separately suspended tariffs on $1.3 billion worth of French cosmetics, handbags and other goods.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
AXIL Brands Stock Skyrockets After Walmart Deal Puts Its Next-Gen Earplugs In 3,700 Stores
AXIL Brands Stock Skyrockets After Walmart Deal Puts Its Next-Gen Earplugs In 3,700 Stores
Mar 10, 2026
AXIL Brands Inc. ( AXIL ) stock rose after announcing a nationwide retail deal that will bring the new X30 LT in-ear hearing protection plugs to more than 3,700 Walmart Inc. ( WMT ) stores, starting in February 2026. The agreement marks AXIL’s largest retail placement to date and builds on its 2025 rollout, broadening access to its patented hearing...
Market Chatter: OpenAI, Microsoft Face Lawsuit Over Alleged Role of ChatGPT in Death of Mother-Son in Connecticut
Market Chatter: OpenAI, Microsoft Face Lawsuit Over Alleged Role of ChatGPT in Death of Mother-Son in Connecticut
Mar 10, 2026
11:48 AM EST, 12/11/2025 (MT Newswires) -- OpenAI and Microsoft ( MSFT ) are facing a lawsuit in California over the alleged role of the ChatGPT chatbot in the death of a woman and her son in Connecticut, the Associated Press reported Thursday. According to the report, police said that in early August, 56-year-old Stein-Erik Soelberg killed his 83-year-old mother,...
Adobe Outlook Not Yet Inspiring Amid Solid Q4, Morgan Stanley Says
Adobe Outlook Not Yet Inspiring Amid Solid Q4, Morgan Stanley Says
Mar 10, 2026
11:56 AM EST, 12/11/2025 (MT Newswires) -- Adobe (ADBE) reported solid fiscal Q4 results but its fiscal 2026 guidance continues to reflect a decelerating growth trend, Morgan Stanley said in a report Thursday. The report said the results were solid, with revenue, margins and Digital Media net new annualized recurring revenue beating consensus. It also pointed to compounding GenAI adoption....
What's Going On With Netflix Stock Thursday?
What's Going On With Netflix Stock Thursday?
Mar 10, 2026
Netflix Inc ( NFLX ) shares are edging higher Thursday as the streaming giant defends its $82.7 billion merger agreement with Warner Bros. Discovery Inc ( WBD ) against an aggressive hostile counter-bid. Here’s what investors need to know. Netflix ( NFLX ) stock is moving in positive territory. What’s driving NFLX shares up? What To Know: The drama escalated...
Copyright 2023-2026 - www.financetom.com All Rights Reserved