CEI Joins ATR: Applauding U.S. Action on DST, Calling for Tougher EU Trade Terms

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Dear President Trump,

Thank you for protecting American innovators from abuse by the Canadian government through their Digital Services Tax (DST). We also applaud your strong stance against European efforts to overregulate, tax, fine, and otherwise extort our successful companies.

The European Union has been fleecing our companies for decades, and the last administration turned a blind eye to it while they ate into our competitive edge. As you address unfair non-tariff trade barriers in your negotiations with the European Union, we encourage you to secure explicit commitments to refrain from discriminating against U.S. technology companies.

The EU treats American technology companies like a piggy bank to fund their welfare states. Laws like the Digital Markets Act allow unelected European bureaucrats and government-funded NGOs to shake American companies down to a degree that ensures they cannot compete with European and Chinese competitors. They then siphon billions of dollars in fines before these companies can reasonably try to comply.

American technology leaders Google, Amazon, NVIDIA, Microsoft, Apple, and Meta have all faced antitrust fines and court judgements under the EU’s Digital Markets Act in the past few years. They are punished for being the only game in town, even as the EU makes it impossible for Europeans to compete with them.

Europe’s overregulation has crushed their own ability to innovate and compete. Rather than allow their own people to flourish, the European Commission and member states continue to impose their own dour and pessimistic legal frameworks to weaken American technology companies and prop up their own through subsidies. Of course, rather than resulting in a thriving tech sector in

Europe, this approach simply cedes ground to Chinese tech giants that are eagerly awaiting to seize market share from U.S. companies. Over the last few weeks, European officials have repeatedly stated that they refuse to address these practices in trade talks with the U.S. They seem to have forgotten who is now in the White House and expect the U.S. to continue rolling over. As your strong leadership against Canada’s discriminatory digital services tax showed, the U.S. is no longer sitting on the sideline as foreign governments shake down our companies.

This is a critical moment to ensure a U.S.-EU trade deal explicitly addresses the extortionate and discriminatory practices in the DMA and prevents similar practices in future laws. History has shown that without a strong U.S. government response, the EU will not stop targeting American innovators.

We stand ready to support these efforts to stand up for American interests as our innovators lead us into a new golden age.

Sincerely,

Grover Norquist                                           

President                                                        

Americans for Tax Reform                            

David Williams

President

Taxpayer Protection Alliance

James Erwin                                                 

Executive Director                                         

Digital Liberty                                               

Ryan Ellis

President

Center for a Free Economy

Lorenzo Montanari                                      

Executive Director                                         

Property Rights Alliance                                

Phil Kerpen

President

American Commitment

Jessica Melugin                                           

Director of Technology & Innovation           

Competitive Enterprise Institute                   

Council

Karen Kerrigan

President & CEO

Small Business & Entrepreneurship

Daniel Erspamer                                          

CEO                                                               

Pelican Institute                                             

James Madison Institute

Edward Longe

Director of Technology & Innovation

Paul Gessing                                                 

President                                                        

Rio Grande Foundation                                 

Brent Gardner

Chief Government Affairs Officer

Americans for Prosperity

Charles Sauer                                               

President                                                        

Market Institute                                             

Dick Patten

President

American Business Defense Council

Jim Martin                                                    

Chairman                                                        

60Plus                                                            

Andrew Langer

President

Institute for Liberty