President Trump recently succeeded in stopping discriminatory Digital Services Taxes (DSTs) from Canada, which hurt taxpaying American businesses and families in their wallets. Now it’s time to build on that win as key trade negotiation deadlines approach between the U.S. and the European Union (EU).
As the National Taxpayers Union has often pointed out before, the EU’s Digital Markets Act (DMA) and Digital Services Act (DSA) are steeped in controversy. Both contain protectionist provisions that hamper the long-term innovation potential of U.S. companies and their workers.
Under President Joe Biden, U.S. officials were spending American tax dollars to collude with European enforcers in implementing DMA and DSA. It’s time for a change of course.
As President Trump starts trade negotiations with the EU, he should recognize that DMA and DSA can often work against our interests, by effectively walling off European markets by subjecting certain American companies to regulations, taxes, and other requirements that do not affect most European companies. The results? European governments enjoy the benefits of American innovation while litigating against and extracting enormous fines from American businesses, often while pushing for even easier access to our own markets.
U.S. trade negotiators should use our leverage to secure four key commitments:
- End discriminatory EU regulations;
- Ensure equal treatment under digital rules;
- Pause new EU measures that disproportionately impact U.S. firms; and
- Demand a clear pledge to stop targeting American businesses
Thank you President Trump for standing up to other countries’ DSTs – Now Let’s Get a Fairer Deal from the EU!
Learn More Here:
Discouraging Digital Services Taxes through U.S. Trade Negotiations