Trump Goes to Bat for Big Tech in Global Trade Talks

Companies position their interests as 'America First' to win over Trump

- Amrith Ramkumar & Gavin Bade

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 August 1 deadline, 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 Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are scheduled to meet Friday in Washington with South Korea's trade and finance ministers.

President Trump's abrupt termination 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Canada quickly rescinded the tax to salvage trade discussions.

The emphasis on protecting America's internet companies abroad follows a yearslong campaign 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 on their businesses.