Key takeout
- President Trump has directed trade relief for digital services taxes that affect U.S. tech companies.
- Digital tax memos could impact crypto companies by introducing new compliance challenges and tariffs.
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Today, President Donald Trump is preparing to sign a memorandum of understanding instructing US trade representatives to develop trade relief measures against foreign digital services taxes targeting US tech companies, including alphabet and metaplatforms. Bloomberg reported.
The initiative addresses digital services taxes implemented by around 30 countries, including France, the UK and Canada.
The memorandum does not specify accurate tariffs or timelines, but suggests potential retaliation measures that could affect US-based companies operating internationally, including people in the crypto sector. I'm doing it.
The lawsuit follows previous US investigations into digital services taxes, including a 2019 USTR survey that determined these taxes would disproportionately affect American businesses.
Trump's administration has previously launched probes to digital tax systems in France, Italy, Spain and other countries, claiming that these policies are harmful to US businesses.
As Canada implemented the Digital Services Tax in July 2024 and other countries maintain or develop similar measures, the US response could lead to wider global trade and tax disputes.
These disputes can affect blockchain companies and internationally operated crypto exchanges.
Evolving regulations regarding digital services taxes could lead to increased scrutiny and tax obligations for crypto companies.
Companies operating across borders may face new compliance challenges as governments either align their tax systems with global standards or implement new tariffs on digital transactions.
These additional costs could potentially prevent market expansion or armed exchanges, transfer costs to users, and reduce trading activities.
Previous trade policies have already affected the crypto sector.
As of February 1, President Donald Trump's announcement that he would impose tariffs on imports from Mexico, Canada and Europe caused a wave of liquidation in the cryptocurrency market.
On February 3, Crypto Market experienced the biggest liquidation event of the year, wiping out more than $2 billion from its leverage position in just 24 hours.
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