In a bold move, former U.S. President Donald Trump has declared his intention to impose retaliatory tariffs on countries implementing digital taxes on American tech giants.
During a recent press briefing, Trump responded affirmatively when questioned about signing an executive order related to digital taxation. \"We are going to be doing that, digital. What they're doing to us in other countries is terrible with digital, so we're going to be announcing that,\" he asserted.
The White House released a fact sheet earlier this month highlighting the issue: \"Though America has no such thing, and only America should be allowed to tax American firms, trading partners hand American companies a bill for something called a digital service tax.\" The document further stated, \"Canada and France use these taxes to each collect over $500 million per year from American companies,\" adding that overall, these non-reciprocal taxes cost U.S. firms over $2 billion annually.
Digital taxes have been a contentious issue, with several European nations advocating for levies on major tech companies like Google, Amazon, Apple, and Meta operating within their borders. The United States has consistently opposed these measures, arguing they unfairly disadvantage American businesses.
Trump's administration previously initiated a \"301 investigation\" into the digital services taxes of various trade partners, citing concerns over the equitable treatment of U.S. businesses abroad.
While President Joe Biden sought to negotiate a compromise in October 2021 with countries including Austria, Britain, France, Italy, and Spain, under the OECD's global tax deal, Trump has taken a different stance. On his first day back in office on January 20, Trump signed a presidential memorandum declaring the global corporate minimum tax deal under the OECD framework as \"having no force or effect\" in the United States, effectively withdrawing from the agreement negotiated by the Biden administration with nearly 140 countries.
This development signals a potential escalation in the trade tensions surrounding digital taxation, which could have significant implications for global tech industries and international trade relations.
Reference(s):
cgtn.com
