February 13, 2025: The ongoing debate in Australia over digital regulation is looking likely to face stronger resistance from the US. Trump’s administration has already indicated its intention to oppose any foreign regulations that it deems discriminatory to American tech companies. In a recent confirmation hearing, Jamieson Greer, who is set to be the new US Trade Representative, warned that the US would not tolerate such measures, which could include  Australia’s proposed digital media bargaining code.

The digital media bargaining code requires large digital platforms like Google, Meta and Apple to pay for the use of news content from local publishers, including newspapers. If the digital platforms refuse to pay for content, they will have to pay a large levy to the government. US officials have made it clear that they view such regulations as unfair and an overreach of government authority.

Greer declined to comment directly on Australia’s plan to levy US tech giants  but suggested that similar actions could prompt retaliatory actions under Section 301 of US trade law. The US has used this provision to challenge other countries over digital service taxes that it considers discriminatory. While they would apply to all platforms, not only those from the US, Greer sees this type of taxation as discriminatory and an extraterritorial tax on its businesses, which could strain the trade relationship further.

Trump’s broader protectionist agenda could also impact the Australian economy, even though the US currently has a trade surplus with Australia. The possibility of Trump imposing a 10% universal tariff on foreign goods, as part of his plan to address the US trade deficit, poses an indirect risk. While Australia may avoid direct tariffs due to its trade surplus, and it has been suggested it could be exempted from the steel and aluminium tariffs that Trump put into place, other US tariffs—especially on Chinese exports—could affect Australian industries that are tied to global supply chains, particularly in sectors dependent on Chinese demand.

While Australia’s levy on digital platforms aims to ensure that local news outlets are compensated for content, Trump’s administration and its strong ties to Silicon Valley billionaires has shown a preference for minimal government intervention in the digital sector. The potential for retaliatory actions under US trade law is an attempt to pressure the Australian government to alter its regulation of digital platforms which should be resisted.