In a recent memorandum, key figures from the United States government have outlined measures to protect American companies and innovators from what they describe as overseas extortion and unfair penalties. The document emphasizes the significance of the U.S. digital economy, noting its size relative to several major global economies.
"Beginning in 2019, several trading partners enacted digital services taxes (DSTs) that could cost American companies billions of dollars," states the memorandum. It highlights concerns about foreign regulations that disproportionately affect U.S. companies by imposing more restrictive conditions than those applied to domestic entities in other countries.
The administration plans to counter these challenges through various responsive actions, including tariffs, when necessary. "My Administration will not allow American companies and workers and American economic and national security interests to be compromised by one-sided, anti-competitive policies and practices of foreign governments," the document asserts.
The policy section details criteria for identifying discriminatory practices against U.S. companies, such as burdensome taxes or regulations that threaten intellectual property or competitiveness. It underscores the administration's commitment to addressing these issues through appropriate measures.
Several responsibilities are designated to various agencies, with the United States Trade Representative tasked with evaluating whether to renew investigations into DSTs from countries like France, Austria, Italy, Spain, Turkey, and the United Kingdom. The representative is also charged with considering actions under trade agreements such as the United States-Mexico-Canada Agreement regarding Canada's DST.
The Secretary of Commerce and other officials are instructed to identify discriminatory practices affecting U.S. businesses globally and recommend suitable countermeasures. The memorandum includes provisions for protecting freedom of speech and political engagement concerning foreign use of U.S. products or services.
Overall, this memorandum outlines a strategic approach aimed at safeguarding American economic interests against perceived unfair international practices.
