Key dealers
- President Trump is trade in trade against digital services affecting US technology companies.
- Digital taxemo can affect crypto companies by introducing new challenges and customs duties.
Today, President Donald Trump prepares himself to sign a memorandum that leads the US trade representative to develop trading drugs against foreign services for digital services aimed at US technology companies, including alphabets and metapatforms, reported Bloomberg this morning.
The initiative deals with digital service taxes implemented by approximately 30 countries, including France, the United Kingdom and Canada, which the United States considers discriminatory.
Although the memorandum does not specify exact customs or timelines, it proposes potential revenge measures that may affect US-based companies operating internationally, including those in the cryptos sector.
The measure follows previous US investigations of digital service taxes, including an URST investigation in 2019 that determined these taxes disproportionately affects US companies.
Trump’s administration had previously launched probes in the digital tax systems in France, Italy, Spain and other nations, claiming that this policy was harmful to American companies.
Once Canada has completed its digital service tax in July 2024 and other countries either maintained or develop similar measures, US answers may trigger broader global trade and tax disputes.
These disputes can potentially affect blockchain companies and cryptout changes that work internationally.
The developing regulations on digital service taxes can lead to increased review and tax obligations for crypto companies.
Companies that operate across borders can face new challenges for compliance as governments adapt their tax systems to global standards or implement new tariffs on digital transactions.
These additional expenses may deter market expansion or exchange of power to transfer costs to users, which can potentially reduce trading activity.
Previous trade policy has already affected the crypto sector.
As of February 1, announcements from President Donald Trump triggered to introduce customs on import from Mexico, Canada and Europe a wave of liquidations in the Cryptocurrency market.
On February 3rd, The crypto market experienced the biggest liquidation event of the yearWith over $ 2 billion wiped out from utilized positions in just 24 hours.
