U.S. tech giants, including Amazon, Meta, X, Apple, and Google, are urging the U.S. government to take action against Australia, citing concerns that Australian laws are forcing American companies to pay "hundreds of millions of dollars." These companies argue that Australia's legislation places an unfair burden on U.S. businesses, hindering their operations and profitability.
The Computer & Communications Industry Association (CCIA) has submitted documents to the U.S. Trade Representative's office, discussing a new round of tariffs scheduled to take effect on April 2nd. The association's stance is against the tariffs, and they are urging the U.S. government to take action against countries with digital and social media laws similar to Australia's, arguing that these laws impede fair trade conditions.
In its filing, the association stated, "The primary goal should not be to restrict foreign products or services, but to eliminate barriers to trade." They believe that while targeted reciprocal measures are necessary negotiating tools in some cases, they often create costs and unintended consequences, including increasing input costs for domestic manufacturing, services, and corresponding exports, thus harming the overall economy.
The association further urged the U.S. government to take action against overseas laws that they claim extract funds from U.S. companies to "subsidize" foreign industries. The statement pointed out that Australia reportedly extracts revenue from U.S. digital providers and redistributes it to local news businesses, costing U.S. companies $140 million (A$222.3 million) annually.
The statement also warned that costs could increase further if Australia continues to push forward with new "incentive" taxes. Australia's News Media Bargaining Code requires designated digital platforms to pay local news publishers for their content. It remains unclear whether the U.S. government will act on the statement, however, tariffs on Australian tech product exports to the U.S. may not have a significant impact, but exports like beef and pharmaceuticals have recently garnered attention, holding a larger stake in Australia's trade relationship with the United States.