Digital rules dispute deepens as US administration avoids trade retaliation
Foreign digital regulations face pushback from the US administration.
The US administration is criticising foreign digital regulations affecting major online platforms while avoiding trade measures that could disrupt the US economy. Officials say the rules disproportionately impact American technology companies.
US officials have paused or cancelled trade discussions with the UK, the EU, and South Korea. Current negotiations are focused on rolling back digital taxes, privacy rules, and platform regulations that Washington views as unfair barriers to US firms.
US administration officials describe the moves as a negotiating tactic rather than an escalation toward tariffs. While trade investigations into digital practices have been raised as a possibility, officials have stressed that the goal remains a negotiated outcome rather than a renewed trade conflict.
Technology companies have pressed for firmer action, though some industry figures warn that aggressive retaliation could trigger a wider digital trade war. Officials acknowledge that prolonged disputes with major partners could ultimately harm both US firms and global markets.
Despite rhetorical escalation and targeted threats against European companies, the US administration has so far avoided dismantling existing trade agreements. Analysts say mounting pressure may soon force Washington to choose between compromise and more concrete enforcement measures.
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