Trump can gain power to retaliate foreign taxes

A new chapter of retaliation created by US President Donald Trump is about to start. After starting a global tariff war-whereby it had to retreat in many cases-and threaten authorities from other countries, including members of the Brazilian judiciary, now the US executive intimidates nations that seek to tax the Big Techs from the US, such as Alphabet (Google), Amazon, Apple, Meta (Facebook), Microsoft and Nvidia.

This is what a broad tax bill proposes in the US Congress. If the measure is approved, Trump would have the power to retaliate foreign digital taxes, that is, countries that tax large US technology companies can see their companies that have business in the United States to be overwhelmed. In addition, the project may also allow tax increases for foreign residents in the country.

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By pursuing these possibilities, Trump government intentions by attacking foreign authorities are increasingly evident. Attacks to the Federal Supreme Court (STF) of Brazil and the European Union, under the pretext of an alleged defense of freedom of expression, would actually be a way to conceal their true intention to protect Big Techs against any regulation, as discussed by Europeans and Brazilians.

In many countries the possibility of taxing the big techs already happens or is debated. In Brazil, the proposal was even considered, but is ‘shelved’.

As the columnist of UOL Jamil Chad, since February the White House ordered to investigate countries that charge fees against technology companies. Worldwide, the US government estimates that $ 2 billion would have been earned by other nations with fees. The United States Commerce Representative would be authorized by Trump to open lawsuits against foreign tax taxes, as performed by France, Italy, Germany, the United Kingdom and Turkey.

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In addition to meeting a demand from technology companies that maintain strong proximity to the government, there is also interest in revenue that the measure could generate for US coffers. This further demoralizes the far -right demagogue discourse against taxes, and Trump’s main measures in the commercial area are levied on increased rates – not about their elimination.

The bill that offers Trump this possibility of imposing tariffs as a way to retaliate other nations has already been approved in the House and will now pass the Senate. Thus, everything leads to believing that the advance of the proposal can dive the planet into a fiscal war while the trade war started by Trump still reverberates and can gain new contours when the 90 -day tariff reduction period with China is over.

*With information Reuters