Tech giants call on Trump to target Australia over media laws

U.S. tech giants, including Amazon, Meta, X, Apple, and Google, are calling on the Trump administration to take action against Australia, citing concerns that Australian laws are forcing U.S. companies to pay "hundreds of millions of dollars" in fees. This collective appeal highlights the growing tension between these tech giants and Australia's regulatory environment.

The Computer & Communications Industry Association (CCIA) has submitted relevant documents to the Office of the United States Trade Representative, discussing a new round of tariffs scheduled to take effect on April 2nd. While the association clearly opposes tariffs, it also urged the U.S. government to target countries with digital and social media laws similar to Australia's, arguing that these laws impede the trade environment and fair competition.

In its submission, the CCIA stated, "The primary objective should not be to restrict foreign products or services, but rather to eliminate barriers to trade." The document further noted, "Targeted reciprocal measures, while sometimes necessary as a negotiating tool, always come with costs and unintended consequences, including raising input costs for domestic manufacturing, services, and corresponding exports." This reflects a nuanced view on trade policy, acknowledging the potential downsides of retaliatory actions.

The association also urged the U.S. to target overseas laws that allegedly extract funds from American companies to "subsidize" foreign industries. The statement mentioned that Australia reportedly extracts and redistributes revenue from U.S. digital providers to local news operations, costing U.S. companies $140 million (A$222.3 million) annually. The CCIA warned that costs could further increase if Australia continues to pursue new "incentive" taxes, referencing Australia's News Media Bargaining Code, which requires designated digital platforms to pay local news publishers for content.

It remains uncertain whether the U.S. government will act on this statement. Imposing tariffs on Australian tech product exports to the U.S. may not have a significant impact. However, export products such as beef and pharmaceuticals, which account for a larger share of trade between Australia and the U.S., have recently garnered attention and could be more vulnerable to trade disputes.