Australia Faces US Trade Backlash As Tech Giants Push Trump For Retaliation

The U.S. consumer technology sector is turning its attention to Australia, urging the Trump administration to take action against what it describes as harmful foreign tax rules and policies that are stifling innovation and trade in the former nation.

The Consumer Technology Association (CTA), a major U.S. trade group, is the latest organization to call on the government to take a stand against Australia's regulations.

CTA represents 1,200 companies, including tech giants like Sony, Microsoft, Dell, Adobe, Samsung, Alibaba, and Accenture, the Guardian reported.

In its official submission to the White House, CTA praised President Donald Trump's stance on combating digital service taxes (DSTs) imposed by foreign countries. One example highlighted was Australia's Goods and Services Tax (GST) on the sale of imported digital products and services.

With close ties between Silicon Valley leaders and the Trump administration, the U.S. tech industry is now urging President Trump to put pressure on Australia to either relax the rules or face potential retaliatory actions.

In February, the U.S. Trade Representative (USTR) sought public comments to review potential unfair trade practices by other countries, as part of the America First Trade Policy. The consultation aimed to identify non-reciprocal trade deals that could harm the U.S. and guide the USTR in recommending corrective actions. Industry associations, including those in the U.S. tech sector, have seized the chance to voice their concerns, including about Australia.

A total of 766 submissions have been made to the Trump administration's review of "unfair trade practices," with U.S. industry groups pushing for more favorable trade rules from President Trump.

Concerns as Australia braces for trade sanctions

The American Chamber of Commerce in Australia (AmCham) expressed confusion over Australia's inclusion in a group of nations with trade deficits with the U.S. Despite the fact that Australia has maintained a trade surplus with the U.S. for decades, AmCham questions why the country has been treated the same as others like China and Mexico, with which the U.S. has large trade imbalances.

Since 1952, Australia has consistently imported more goods from the U.S. than it has exported, highlighting the trade surplus between Canberra and Washington.

After unsuccessful attempts to secure an exemption from global steel and aluminum tariffs, the Albanese government and industry groups are bracing for the next round of trade sanctions from the Trump administration, set to take effect on April 2.

Complaints over news regulations

Meanwhile, the Computer and Communications Industry Association (CCIA), representing various tech companies, has also joined the U.S. push against Australia's regulations. In its submission to the U.S. government, the CCIA criticized the Australian government's "News Bargaining Incentive" policy, ABC reported.

Australia's new scheme requires major social media and search companies, like Google and Meta, to negotiate commercial deals with local media outlets or pay a separate charge for using their content. The CCIA argues that this policy forces U.S. tech companies to subsidize Australian media companies, calling it a "coercive and discriminatory tax."

Meta, which opted out of a similar arrangement last year, would now be required to comply under the new rules. The CCIA describes the policy as one that has "extractionary and redistributive characteristics," The Conversation reported.

More U.S. industries join criticism

The submissions also highlight Australia's stalled plans to introduce local content requirements for streaming platforms, which could add further pressure to the trade negotiations.

The Motion Picture Association, representing global entertainment giants like Netflix, Sony, Universal, and Disney, has also voiced opposition to Australia's local content mandates. The association argues that these mandates could violate free trade agreements between the U.S. and Australia.

Meanwhile, U.S. winemakers and pharmaceutical companies have also raised concerns about Australia's policies, hinting at the possibility of broader economic retaliation.

In response to the growing pressure from U.S.-based companies, Australia's Treasurer, Jim Chalmers, emphasized that the Australian government would continue to make decisions in the country's national interest, regardless of external pressures from major U.S. industries.