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To Do: Update Section 301 of the Trade Act for the Digital Economy

To Do: Update Section 301 of the Trade Act for the Digital Economy
Knowledge Base Article in: Tech Policy To-Do List
Last Updated: February 10, 2025

Recommendation

Congress should amend and the administration should use Section 301 of the Trade Act of 1974 to target digital trade issues.

Details

Congress should amend a key U.S. trade defense tool—the Trade Act of 1974—to respond to the digital barriers central to modern trade. The law should detail the responsible agency and process (i.e., the actions, such as licensing, certification, or legal judgment) whereby the administration can impose specific retaliatory measures on a foreign service provider. The administration also should use Section 301 of the Trade Act to initiate an investigation of the European Digital Markets Act (DMA), which has been used to target and penalize U.S. tech firms. Section 301 can be used to enact tariffs, taxes, or restrictions on EU digital service companies doing business in the United States.

Keep reading:

Robert D. Atkinson, “Testimony to the US House Ways and Means Trade Subcommittee: Protecting American Innovation by Establishing and Enforcing Strong Digital Trade Rules” (ITIF, September 2024), https://itif.org/publications/2024/09/20/testimony-house-ways-and-means-trade-subcommittee-strong-digital-trade-rules/.

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