Trump demands countries back down on tech regulation or face big new tariffs

The Albanese government’s plans to get international tech companies to pay for using Australian news are in danger after US President Donald Trump announced he would hit any country that imposed digital taxes or regulations on American businesses with “substantial tariffs”.

Trump, who earlier this year stared down Canadian plans to impose a digital levy on tech firms operating in that country, this morning used social media to reveal he would not only inflict high tariffs on countries that hurt US businesses but also restrict access to technology and computer chips.

The federal government has promised to create a News Media Bargaining Incentive to reinforce the News Bargaining Code under which firms such as Meta - the owner of Facebook - and Google paid Australian publishers including companies such as Nine and News Corporation for use of their content. The owner of this masthead, Nine, received payments under the News Bargaining Code.

Meta has refused to renew deals struck under the Morrison-era bargaining code, and the government unveiled the new incentive to substantially replace it. Under the proposed changes, tech companies would face a charge for using Australian content unless they struck a deal with individual businesses.

Trump did not mention Australia, but said he was standing up to countries attacking US tech companies through digital taxes, laws or regulations that were all aimed to “harm, or discriminate against” American technology.

“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed; I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips,” he posted.

“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer.

“Show respect to America and our amazing Tech Companies or, consider the consequences!”

Guardian Australia’s managing director Rebecca Costello told this masthead it was vital that US-based technology giants were made to pay fair compensation to media companies for using their content.

“The government has a responsibility to support the sustainability of journalism in Australia by using the regulatory and fiscal tools available to create a fairer digital environment,” she said.

“We want to see fair licensing and genuine value exchange, not the subsidising of big tech’s business model with our own investment in quality journalism. Australian content deserves protection.”

Meanwhile, Scott Purcell, co-founder of independent publication Man of Many, said the latest threat from Trump posed a clear danger to Australia’s “fragile” media sector.

“It is a geopolitical stress test that the current News Media Bargaining Code and the proposed News Media Bargaining Incentive fail to support the broader industry, just as we saw in Canada,” he said.

Opposition trade spokesperson Kevin Hogan said Australia had a “right” to get big tech to pay for journalism and that Albanese needed to put the case to Trump in person.

“The list of reasons why the prime minister must urgently meet with the US president keeps getting longer,” Hogan said in a statement.

“Steel, aluminium, pharmaceuticals, copper, and now our digital economy. Australians deserve a prime minister who will defend our exporters, and our right to make big tech pay fairly for local news.”

Nine, News Corp and ABC declined to comment. Google, which is currently committed to re-signing commercial agreements with Australian media organisations, also declined to comment.

In June, the Canadian government dropped its plan to impose a tax on tech companies after Trump threatened to impose huge tariffs on the US’s northern neighbour.

Last week, Trump announced the US government would take a 10 per cent stake in American computer chip manufacturer Intel. He also revealed chip manufacturers Nvidia and AMD had agreed to pay the government 15 per cent of Chinese revenues in return for export licences to China.

With Calum Jaspan and David Swan

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