President Trump planning to seal U.S. dominance in global digital trade

President Donald Trump’s administration is planning to seal U.S. dominance in global digital trade with new agreements with Southeast Asian nations that prevent taxes and tariffs on American technology firms.

Trump has signed deals with Malaysia and Cambodia, as well as the preliminary agreement with Thailand, which commit those countries not to impose digital services taxes or restrict U.S. providers of e-commerce, cloud computing, social media, and streaming platforms. 

U.S. seeks permanent global ban on digital tariffs under new trade pacts

According to a Bloomberg report, the U.S. plans to make permanent the World Trade Organization’s (WTO) exemption from customs duties for electronic transmissions. This was initially done through two-year renewal terms, starting in 1998. The agreement prevents countries from applying tariffs on cross-border digital services and products such as e-books, movies, and software downloads.

Malaysia, Cambodia, and Thailand have now pledged to support the U.S. in its bid. Malaysia has promised not to require U.S. social media and cloud providers to pay into domestic digital funds.

Andrew Wilson, Deputy Secretary-General for Policy at the International Chamber of Commerce, acknowledged that the plan counters a trend of localization requirements that has seen some nations impose rules to keep data and digital infrastructure within their borders. Wilson added that country-by-country progress is valuable, but the ultimate goal should be to lock the regulations in a new international deal.

Currently, the digital services sector is valued at $33 trillion based on UN data, marking the fastest-growing area of international commerce. According to UN statistics, global exports of digital services reached $4.77 trillion in 2024. That represented a 10% year-over-year increase. 

Emerging technologies, such as AI, have played a role in driving the growth of digital trade by enabling automation and personalized online services. On the other hand, they have also raised concerns about data security, sovereignty, and consumer privacy.

As China expands its influence across Africa, South Asia, and Latin America, the U.S. seeks to define a global “digital order” governed by American rules, technology, and platforms. Trump’s policy of reciprocal tariffs has sidelined the WTO’s dispute resolution methods, but his administration continues to engage selectively, especially on issues critical to U.S. tech interests.

U.S., Europe, and emerging economies clash over control of the digital economy

According to Wilson, the commitments in these U.S. deals to facilitate the free flow of data are absolutely welcome, but it’s too soon to call it a full WTO re-engagement. This appears to be selective engagement on terms that favor U.S. big tech.

In Europe, Brussels has pushed for stronger data privacy and antitrust enforcement, challenging the view that such regulations hinder innovation, as opposed to Washington. France recently doubled its tax on large technology companies, drawing threats of retaliation from the White House.

India and Brazil have also resisted U.S. calls for a permanent WTO moratorium. Martina Ferracane, an associate professor of international digital trade at Teesside University in the UK, said a permanent extension of the moratorium remains uncertain. 

Cameroon will host the 2026 WTO ministerial meeting, which is expected to intensify the battle over digital trade rules further. As of now, the United States demonstrates determination in utilizing trade leverage to foster a tariff-free digital future. The country hopes this could shape the balance between economic openness, national sovereignty, and U.S. technological power. 

According to a report from Cryptopolitan, the U.S. has warned the EU that its digital laws could harm trans-Atlantic relations unless they are revised. The U.S. argued that the laws impose liabilities on American tech firms, which limits free speech on the internet. 

For instance, the warning alert is being issued amid Europe’s crackdown via the Digital Markets Act and the Digital Services Act. The laws set by the EU to prevent powerful platforms and online creators from abusing their power are already facing backlash from U.S. tech giants, such as Apple and Meta.

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