D-Day National Commemorative Event More: President Donald J. Trump addresses his remarks during a D-Day National Commemorative Event Wednesday, June 5, 2019, at the Southsea Common in Portsmouth, England.

(Official White House Photo by Shealah Craighead). Original public domain image from Flickr

Yesterday, President Donald J. Trump took decisive action to defend American innovation from predatory foreign regulations, signing a landmark memorandum aimed at protecting U.S. businesses from unjust overseas extortion. In doing so, the Trump administration made clear that America will not stand idly by as foreign governments attempt to siphon revenue and intellectual property from the companies that drive our digital economy. 

For years, American technology firms have been unfairly targeted by foreign governments looking to fund their own failing economies. Digital Service Taxes (DSTs), excessive fines, and burdensome regulations like the European Union’s Digital Markets Act and Digital Services Act have sought to punish U.S. success, forcing American companies to pay into foreign treasuries simply for operating in global markets. President Trump’s new directive puts a stop to this exploitation. 

“The Trump administration believes that American companies should answer to American laws, not foreign bureaucrats looking for a free ride,” President Trump declared. “We will not allow foreign governments to appropriate America’s tax base, nor will we tolerate coercive regulations designed to undercut our economy.” 

The memorandum lays out a bold agenda to counteract these harmful policies: 

  • The U.S. Trade Representative (USTR) will renew Section 301 investigations into Digital Service Taxes and expand scrutiny to any country attempting to discriminate against American firms. 
  • The administration will review and challenge foreign regulations, including the EU’s Digital Markets Act and Digital Services Act, that force American companies into compliance with foreign censorship and anti-competitive policies. 
  • The U.S. will take responsive action—including tariffs—against countries that unfairly tax or fine American businesses. 
  • The administration will protect American intellectual property from coercive foreign policies that demand U.S. businesses hand over their innovations. 

Foreign governments have increasingly looked to America’s thriving digital economy as a source of easy revenue. While their own economies falter, these governments see U.S. tech companies as cash cows ripe for taxation and penalties. As a result, billions of dollars are funneled out of American companies each year to fill foreign coffers. This is not only an economic injustice—it’s a direct threat to American innovation and job creation. 

“The success of American business should benefit the American worker and the American economy—not line the pockets of bureaucrats in Brussels,” President Trump stated. “We will fight to ensure that U.S. companies remain the global standard and that their success is driven by merit, not manipulated by foreign interests.” 

This announcement marks a clear departure from the previous administration, which turned a blind eye to these predatory practices. Under Joe Biden, American businesses faced relentless attacks from foreign regulators with little to no pushback from Washington. The Trump administration’s action sends a powerful message: America will no longer tolerate economic subjugation at the hands of foreign governments. 

President Trump’s bold leadership reaffirms his commitment to American sovereignty, economic strength, and innovation. As the administration takes these necessary steps to restore fairness in global trade, the future of American entrepreneurship looks brighter than ever. 

Americans for Tax Reform applauds this initiative by the Trump Administration and intently awaits the unleashing of American business and innovation at home and abroad. 

The full letter can be found here.