Trump administration signals tax and penalty concerns for tech platforms

In a rapid response to Australia’s draft Social Media Algorithm Plan, the White House announced that the Trump administration will oppose any digital service tax or forced levy aimed at the United States’ leading technology companies. The statement, delivered by spokesperson Kush Desai, warned that the President will raise these issues with American trade partners, underscoring a firm stance against compulsory revenue extraction.

Australia’s legislation seeks to curb harmful online content, including material related to eating disorders, misogyny, crime glorification, abuse, and cyber‑bullying. It also mandates protection for adults from illegal content. The bill introduces a “Digital Duty of Care” that would require platforms to give users over 16 the option to opt out of algorithm‑driven feeds, granting greater control over their online experience.

Non‑compliant companies could face fines of up to 10 million Australian dollars (about 7.21 million US dollars). Australian officials, while acknowledging the U.S. concerns, reiterated that the country retains the sovereign authority to protect its children and parents.