Trade Talks Must Confront Foreign Non-Tariff Attacks on American Tech
President Trump's recent 90-day pause on tariffs offers a crucial window for international trade negotiations. While tariffs are a blunt instrument in the trade toolkit, the President rightly wields them to press other nations to roll back their array of mercantilist trade barriers. As he and his team do that, they must ensure they do not exclude a key non-tariff issue: escalating foreign tax and regulatory assault on American tech companies.
The President himself has pointed out the importance of non-tariff trade barriers. However, lurking beneath the surface of traditional trade disputes is an insidious threat to America's long-term techno-economic leadership: the concerted efforts by a growing number of foreign countries to undermine U.S. leading technology companies through discriminatory regulations, tax policies, fines, charges, and other punitive measures. This is not merely a side issue but a fundamental challenge to the U.S. techno-economic dominance and deserves a central place at the negotiating table.
America's technology companies are the backbone of the U.S. economy and tech leadership. They drive research, development, and global competitiveness. When foreign governments target these companies with policy attacks, they threaten the foundations of America's techno-economic leadership. At least 50 jurisdictions have implemented laws and regulations to "rein in big tech," singling out American companies and exploiting their market position to impose disproportionate penalties.
For example, regulatory fines against U.S. tech companies reach up to 20 percent of a company's global revenue. These aren't measured responses to specific market failures; they're punitive actions that disproportionately extort money from American firms simply because they've achieved global scale. This discriminatory approach damages American interests as severely as traditional tariffs, perhaps more so, as it directly undermines the innovation capacity that secures our long-term competitive edge.
President Trump has correctly identified advanced critical technologies like artificial intelligence and quantum computing as vital to America's future. His administration has supported initiatives and funding for moonshot projects to secure American leadership in these emerging fields. However, these efforts are destined to be less effective if the very companies driving this innovation are constantly battling hostile regulatory environments. We cannot simultaneously strive for technological supremacy while allowing our leading tech firms to be unfairly targeted and financially drained by foreign powers.
The nations imposing these policy attacks on American tech leaders must seriously reconsider their approach before engaging in trade negotiations. Discriminatory regulations and taxes, localization requirements, aggressive antitrust policies, protectionist standards, and market barriers. All of these practices should be eliminated. America’s trade partners and allies cannot credibly demand fair treatment while simultaneously orchestrating regulatory attacks designed to disadvantage American technology companies. Economic competition requires a level playing field across all dimensions, including the regulatory environment.
The 90-day pause on tariffs provides an opportunity to broaden the scope of trade discussions. It is time to move beyond tariffs and even non-tariff barriers to include non-tariff attacks and recognize the profound impact of discriminatory tech regulations on American competitiveness. Protecting our technological innovators from unfair foreign attacks is not about safeguarding individual companies but about securing America's techno-economic leadership. As the President engages in these crucial negotiations, ensuring a fair and equitable regulatory environment for American tech must be a non-negotiable priority.
