President Donald Trump has signed a new directive aimed at protecting American businesses from what his administration describes as “overseas extortion.” The directive renews efforts to challenge digital services taxes (DSTs) imposed by foreign governments, which the administration argues unfairly target American companies operating internationally and promote online censorship.
“President Trump will not allow foreign governments to appropriate America’s tax base for their own benefit,” the White House stated, underscoring its commitment to defending US economic interests.
The memorandum directs the United States Trade Representative (USTR) to reopen investigations into DSTs under Section 301, revisiting cases first launched during President Trump’s first term.
Additionally, it calls for scrutiny of other nations implementing DSTs that allegedly discriminate against American companies.
The administration also plans to evaluate European Union and United Kingdom policies that could push US businesses toward practices that, according to the memorandum, undermine free speech or contribute to censorship.
Key regulations under review include the European Union’s Digital Markets Act and Digital Services Act, which dictate how American firms interact with consumers in the region. The White House has signaled potential countermeasures, including tariffs if these regulations are deemed harmful to US business interests.
The memorandum asserts that foreign governments have imposed DSTs as a way to extract revenue from successful American firms rather than fostering economic growth within their own countries. “America’s economy will not be a source of revenue for countries that have failed to cultivate economic success of their own,” the administration declared.
The White House estimates that billions of dollars could be siphoned from US companies annually through these taxes, further arguing that such financial burdens stifle American innovation and reduce global economic competitiveness.
The directive highlights the United States’ digital economy, which has outpaced the total GDP of several developed nations, including Australia and Canada.
The administration attributes this dominance to American technology companies and the entrepreneurial spirit that fuels them.
