US President Donald Trump has taken action to respond to digital service taxes imposed on American companies. The White House announced that President Donald Trump signed a decision to protect American companies from abuses abroad. The statement noted that the Trump administration will consider retaliatory steps such as tariffs against taxes imposed on American companies by foreign governments, including digital service taxes, fines, practices, and policies. He gave orders to investigate the matter.
The statement emphasized that foreign governments’ use of America’s tax base for their own interests will not be allowed, and instructed the US Trade Representative to renew investigations related to digital service taxes initiated in Trump’s first term and to investigate other countries using discriminatory digital service taxes against American companies. The regulations such as the Digital Markets Act and the Digital Services Act that determine how American companies will interact with consumers in the European Union (EU) will be scrutinized by the administration.
Moreover, President Trump signed a decision to restrict China’s investments in US technology, critical infrastructure, health, agriculture, energy, raw materials, and other strategic sectors. The statement from the White House noted that the purpose of the decision was to safeguard US national security interests, especially against threats from foreign competitors like China. The statement also mentioned that the Committee on Foreign Investment in the United States (CFIUS) will be utilized to restrict Chinese investments in technology, critical infrastructure, health, agriculture, energy, raw materials, and other strategic sectors.
The statement indicated that new rules will be implemented to prevent the misuse of American capital, technology, and knowledge by foreign competitors like China, allowing only investments that serve American interests. It also mentioned that the Trump administration is considering imposing new or expanded restrictions on US investments in China targeting sectors such as semiconductors, artificial intelligence, quantum technology, biotechnology, aviation, and other sensitive industries.