On a recent Friday, President Donald Trump issued a memorandum proposing tariffs on countries imposing digital services taxes (DSTs) aimed at big tech firms, including prominent examples like Netflix. These taxes target foreign entities profiting from local markets, yet registered elsewhere, undermining fair competition. While DSTs were seen as interim solutions to address tax avoidance by multinationals, Trump's stance reflects ongoing tension over international taxation policies. The previous Biden administration warned of disproportionate effects on US firms. The memorandum essentially reasserts Trump's claim that American interests cannot be compromised by foreign taxation practices.
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.
Governments argued that was inappropriate because Netflix was selling to their citizens, who consumed the vid-streamer's services in their territory, and that a Netflix subscription therefore represented economic activity in their jurisdictions that should be taxed like any other.
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