The U.S. Congress is considering a bill in 2025 that could empower President Trump to retaliate against countries imposing digital service taxes on large U.S. tech companies like Amazon and Alphabet. This move comes as about 17 countries in Europe and elsewhere have already imposed or announced similar taxes on U.S. tech products.
Representative Ron Estes stated that if foreign countries tax American companies, their companies should also be taxed. The bill, known as Section 899, could generate $116 billion over the next decade.
Section 899 allows the Treasury Department to deem foreign tech taxes as "unfair" and list the country as "discriminatory." Listed individuals and companies from that country operating in the U.S. could face higher tax rates, potentially increasing annually up to 20 percentage points.