Hilal Aka

Korea now faces a clear choice between abandoning discriminatory policies disguised as domestic regulation or risking losing access to American semiconductors and advanced technologies on which its own tech sector depends.

The EU’s €376 million fine against Intel for decades-old conduct risks weakening a struggling Western chipmaker at a time when China is heavily investing to dominate the semiconductor industry.

After facing U.S. backlash over a bill modeled on the EU’s Digital Markets Act, South Korea appeared to pause its digital antitrust push. But rather than stepping back entirely, the government has shifted focus to the Online Platform Fairness Act, which may prove even more intrusive.

The Trump administration should push back against foreign governments enacting policies specifically tailored to undermine American tech companies and US leadership.

With limited bandwidth for negotiations, we can no longer afford to treat all trade sectors equally. The administration should focus on what matters most for America’s economic and national security future: defending our technology industry from foreign attacks.

EU policymakers frame their legislative and regulatory actions against U.S. tech companies as measures to promote competition and protect consumers. But they operate as protectionist trade barriers and revenue-generating mechanisms.

U.S. trade negotiations must go beyond tariffs to confront the growing trend of foreign governments targeting American tech companies with discriminatory regulations, taxes, and fines. These non-tariff attacks undermine U.S. innovation and global competitiveness and must be a central focus to protect America’s techno-economic leadership.

To maintain global competitiveness, the U.S. should support its leading tech companies, ensuring they have the scale and capital needed to drive AI and technological advancements, rather than subjecting them to restrictive regulations that benefit foreign competitors.

The administration should address concerns related to counterfeit products, discriminatory digital taxes, and investment controls for critical technologies with measures to protect American innovation while promoting fair, rules-based trade principles that benefit the U.S. economy and support U.S. technological leadership.

The administration should address mercantilist policies that systematically disadvantage American businesses and workers with corrective measures such as strategic enforcement actions, reciprocal tariffs, expanded trade agreements, and stronger digital trade protections.

The administration should address trade imbalances, discriminatory regulations, and digital trade restrictions imposed by China, India, and the European Union, among others. Targeted policy responses may include reciprocal tariffs, digital trade enforcement, fair pricing mechanisms, and strengthened trade agreements to ensure a level playing field for U.S. businesses.

America should reconsider its antagonistic approach toward Big Tech, instead forging strategic partnerships with these firms—similar to China's recent pivot—to maintain global technological leadership and competitive edge in critical fields like AI and semiconductors.

Please join ITIF’s Aegis Project for an expert panel discussion with leaders from the Council on Global Competitiveness and Innovation (CGCI) and Shield Capital as we examine the vital role Big Tech plays in U.S. technology leadership and national security.

Watch ITIF’s Aegis Project for Defending U.S. Technology Leadership's webinar discussion featuring expert panelists as they examine the growing trend of nontariff attacks on American technology companies and exploring ways U.S. policymakers can respond.