[CTC] Trump Goes to Bat for Big Tech in Global Trade Talks

[Arthur Stamoulis]

*Wall Street Journal*

*Trump Goes to Bat for Big Tech in Global Trade Talks*

Companies position their interests as ‘America First’ to win over the
president

*By  Amrith Ramkumar
<https://www.wsj.com/news/author/amrith-ramkumar>  and  Gavin Bade
<https://www.wsj.com/news/author/gavin-bade>*

*July 22, 2025 9:00 pm ET*


·   The Trump administration is leveraging global trade disputes to protect
the interests of the U.S. technology sector.


WASHINGTON—The Trump administration is using its global trade wars to
advance the interests of the U.S. technology industry, seeking to prevent
foreign countries from targeting American internet firms.

The administration hopes to use the threat of tariffs and access to the
U.S. economy to stop multiple countries from imposing new taxes,
regulations and tariffs on American tech companies and their products ahead
of a self-imposed Aug. 1 deadline
<https://www.wsj.com/economy/trade/trump-tariffs-scott-bessent-trade-deals-cc76e43a?mod=article_inline>,
when higher levies are scheduled to take effect for dozens of trading
partners.

Measures targeting America’s internet giants remain a sticking point in
discussions with Brazil, South Korea and the European Union, according to
people familiar with the discussions. Treasury Secretary Scott Bessent and
U.S. Trade Representative Jamieson Greer are scheduled to meet Friday in
Washington with South Korea’s trade and finance ministers.

President Trump’s abrupt termination
<https://www.wsj.com/world/americas/trump-says-he-has-halted-trade-talks-with-canada-e4482434?mod=article_inline>
of
trade talks with Canada last month over that country’s proposed
digital-services tax highlighted his administration’s focus on the
dominance of the American tech sector. Canada quickly rescinded the tax
<https://www.wsj.com/world/americas/canada-rescinds-digital-services-tax-to-salvage-trade-discussions-with-u-s-0e7e3b61?mod=article_inline>
to
salvage trade discussions.

The emphasis on protecting America’s internet companies abroad follows
a yearslong
campaign
<https://www.wsj.com/articles/tech-companies-make-final-push-to-head-off-tougher-regulation-11671401283?mod=article_inline>
by
tech companies, which have warned that what they call unfair taxes and
regulations overseas could restrict the amount they can invest in the U.S.
The U.S. approach to foreign digital taxes represents a win for an industry
that nevertheless faces issues with the Trump administration domestically,
including antitrust challenges and the impact of tariffs
<https://www.wsj.com/economy/trade/trump-tariffs-second-term-agenda-a2fc368a?mod=article_inline>
on
their businesses.

“The companies have done a very good job at making the big tech agenda
America first,” said Nu Wexler, a public affairs consultant who previously
worked at tech companies including Meta Platforms
<https://www.wsj.com/market-data/quotes/META> and Google. Many companies
and executives donated millions of dollars
<https://www.wsj.com/tech/trump-tech-executives-scorecard-7ab51d22?mod=article_inline>
to
Trump’s inauguration.

Tech companies have found allies on digital trade in Commerce Secretary
Howard Lutnick, Bessent and Greer. In the deal with Indonesia, U.S.
negotiators secured commitments that the Jakarta government would drop
plans to tariff electronic goods such as movies or software downloads.
Similar commitments have been secured from Vietnam, say people familiar
with the plans, though the administration has yet to release documentation
of that deal.

The administration is committed to delivering on Trump’s pledge to defend
innovative U.S. companies from unfair practices overseas, White House
spokesman Kush Desai said.

Brazil is focused on resuming trade talks, not retaliatory measures, a
government official said.

The European Commission, which is in charge of EU trade policy, declined to
comment. The South Korean and Vietnamese embassies didn’t respond to
requests for comment.

Veterans of the first Trump term say the president has long opposed efforts
from other countries to tax and regulate U.S. tech companies, even as he
often battles them on the home front.

Trump “sees this as a way for other countries to grab revenue unfairly from
U.S. companies,” said Everett Eissenstat, a former deputy director of the
National Economic Council.

When the European Union imposed hefty fines on Google and other tech
companies in his first term, Trump referred to the bloc’s then-competition
czar as a “tax lady”
<https://www.wsj.com/world/europe/trumps-team-takes-its-fight-to-a-wary-europe-4e04081b?mod=article_inline>
who
“really hates the U.S.” The U.S. initiated probes
<https://www.wsj.com/articles/trump-says-u-s-to-take-action-against-france-for-tax-on-american-tech-companies-11564159601?mod=article_inline>
of
digital taxes in countries including France in 2019 that stalled during the
Biden administration.

Countries have long tried to allocate more of Silicon Valley’s profits from
digital advertising and online activities to their territories. Many
are ramping
up regulations
<https://www.wsj.com/tech/australia-lawmakers-pass-landmark-social-media-ban-for-under-16s-da2d63f0?mod=article_inline>
for
taking down misinformation, promoting transparency and keeping minors safe
online. Some are trying to strengthen antitrust laws.

The Biden administration hoped a multilateral process would address
digital-services taxes, but that effort stalled. Many tech executives felt
former President Biden ignored the rise of overseas regulations.

“The U.S. government has finally acknowledged there is a fire we must put
out,” said Matt Schruers, chief executive officer of the Computer &
Communications Industry Association trade group.

Skeptics say the administration is battling for an already thriving
industry that doesn’t need its support while overlooking other segments of
the economy that are more exposed to tariffs. Democrats have criticized
Trump’s ties to tech and cryptocurrency executives.

After Trump was elected the second time, tech leaders including Meta CEO Mark
Zuckerberg <https://www.wsj.com/topics/person/mark-zuckerberg> and
Google’s Sundar
Pichai <https://www.wsj.com/topics/person/sundar-pichai> made pilgrimages
<https://www.wsj.com/politics/elections/tech-elites-take-center-stage-at-trump-inauguration-af846e64?mod=article_inline>
to
Trump’s Mar-a-Lago club in Florida. Curbing what they said were harmful
policies overseas consistently came up in the conversations, people
familiar with the conversations said.

As administration officials threatened eye-watering tariffs on goods from
many countries, they also demanded that those governments relax some of
their tech restrictions. In March, India withdrew its digital-services tax.
India and the U.S. are still negotiating, but Trump has said he thinks a
deal is close.

Canada’s digital tax was seen as a bellwether because it could have
encouraged other countries to follow through on similar measures. Ottawa’s
levy was expected to cost U.S. tech companies about $3 billion and included
a retroactive component back to 2022.

In late June, Trump and Canadian Prime Minister Mark Carney clashed over
the digital tax at a Group of Seven summit in Canada. Some tech companies
were preparing to make the payments when Trump stepped in just before the
deadline. The two sides haven’t yet reached a trade deal, and Carney has
indicated U.S. tariffs might remain in place
<https://www.wsj.com/world/americas/canada-pm-carney-signals-u-s-tariffs-may-be-here-to-stay-2b2fb5cb?mod=article_inline>
even
with an agreement.

Last week, shortly after Trump said he would impose 50% tariffs on
Brazilian goods
<https://www.wsj.com/world/americas/trump-threatens-50-brazil-tariff-citing-bolsonaro-trial-93a95e7b?mod=article_inline>,
Greer initiated a tariff investigation on Brazil under a section of U.S.
trade law targeting unfair trade practices. Trump cited the country’s legal
action against Jair Bolsonaro, Brazil’s former president and one his
political allies. The investigation includes Brazil’s digital-trade and
electronic-payments practices, the latest salvo cheered by the tech sector.

“This is a very acute focus right now,” CCIA’s Schruers said.
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