President Trump has signed a memorandum that will impose tariffs on countries that levy digital taxes on U.S. technology companies.

The memorandum directs the U.S. Trade Representative Office to resume digital service tax investigations that were initiated under Mr. Trump’s first term and investigate countries that use a digital tax that cost American companies billions of dollars. 

Digital service taxes are fees levied against American tech giants such as Apple, Google, Meta and Amazon. By imposing the tax, a foreign nation can tax digital goods such as software, music, video games or other electronic files created by U.S. companies that are downloaded from the Internet within that country’s borders. It has long been a source of trade disputes. 

“Instead of empowering their own workers and economics, foreign governments have increasingly exerted extraterritorial authority over American companies, particularly in the technology sector, hindering these companies’ success and appropriating revenues that should contribute to our nation’s well-being, not theirs,” said the memorandum, which Mr. Trump signed Friday.

Mr. Trump said earlier this month that he would impose tariffs on Canada and France over their digital service taxes. A White House fact sheet said that “only America should be allowed to tax American firms.” 

The fact sheet said Canada and France each collect more than $500 million per year from U.S. companies. 

Britain, France, Italy, Spain, Canada, Turkey, India and Austria are among the nations that have imposed taxes on the revenue earned by American companies on digital services purchased within their borders. 

“My administration will not allow American companies and workers and American economic and national security interests to be compromised by one-sided, anti-competitive policies and practices of foreign governments,” the memorandum said. “American businesses will no longer prop up failed foreign economics through extortive fines and taxes.” 

During Mr. Trump’s first term, he launched investigations and threatened retaliatory tariffs against companies that levy taxes against U.S. companies. 

In 2021, President Biden’s administration followed up on the investigations launched by Mr. Trump and announced a 25% tariff on $2 billion worth of imports from six countries. However, the Biden administration suspended the tariffs to allow negotiators to reach a deal. 

The negotiations resulted in a 15% global corporate minimum tax, but Congress never ratified the deal. 

• Jeff Mordock can be reached at jmordock@washingtontimes.com.