The US consumer technology industry has Australia in its sights after it encouraged Donald Trump to retaliate against “harmful” foreign tax rules it claims is hampering innovation and trade in the US.
Peak body the Consumer Technology Association (CTA) is the latest US group to point the finger at Australia as part of a review that will inform Trump’s looming wave of retaliatory tariffs.
US-based winemakers, tech giants and drug companies have also lodged complaints, raising the prospect of mass sanctions on Australian goods and services in a major escalation of Trump’s trade war.
In its submission, CTA – which represents 1,200 companies across the US tech industry including Sony, Microsoft, Dell, Adobe, Samsung, Alibaba and Accenture – applauded Trump’s intention to combat “digital services taxes” (DSTs) imposed by other countries.
Among the examples listed was the GST applied to the sale of imported services and digital products to Australian consumers.
“(DSTs) unfairly burdens consumer technology companies, hinders digital trade, and disrupts the free flow of services across borders,” the submission read.
“This decision by other countries hampers innovation and unfairly targets US companies.”
The grievances come as the American Chamber of Commerce in Australia (Amcham) said it was “confounded” Australia had officially been lumped alongside countries with trade deficits with the US despite the decades-long trade surplus between Canberra and Washington.
Australia has imported more goods from the US than it has exported every year since 1952, unlike countries like China and Mexico with whom the US has maintained large trade deficits.
After failing to secure an exemption to worldwide steel and aluminium tariffs, the Albanese government and industry groups are bracing for Trump’s next round of trade sanctions due 2 April.
There have been 766 submissions made to the Trump administration review of “unfair trade practices”, with US industry groups lobbying the president for more preferential trade rules.
The submission also referenced the government’s plans – which have stalled – to introduce local content requirements for streaming platforms.
The Motion Picture Association, which represents Netflix, Sony, Universal and Disney, also railed against local content mandates, arguing it would violate Australia’s free-trade commitments with the US.
A peak winemakers association urged the review to slap tariffs on bulk wine imports from seven countries, including Australia.
California Association of Winegrape Growers said Australian producers benefited from tax offsets and a range of other government subsidies, which made it harder for US winemakers to compete in Australia.
“Targeted reciprocal tariffs on bulk wine imports are necessary to level the playing field and protect American winegrape growers from continued economic harm,” the association said.
The national cattleman’s beef association called for “unrestricted market access” for US beef exports to Australia and an audit of Australia’s animal health and food safety standards.
The NCBA, the marketing and trade association for cattle farmers and ranchers, said most beef produced in the US is consumed by the country, but accused Australia of having “unfettered access” to the US beef market under the US-Australia free trade agreement.
It comes as a peak body for tech giants – including Elon Musk’s X – used its submission to urge the Trump administration to target Australia’s “coercive and discriminatory” news media bargaining incentive.
The incentive aims to bolster the Morrison government’s 2021 news media bargaining code. It involves charging a new levy to digital platforms, which can be offset if they renew or initiate deals to pay news publishers.
The push came after American drug companies used the trade review to criticise Australia’s Pharmaceutical Benefits Scheme (PBS), alleging the “egregious and discriminatory” pricing policies in countries in Australia were putting US jobs and exports at risk.
Responding to the tech companies, the treasurer, Jim Chalmers, said the government would make decisions in Australia’s national interest.
“Our focus and our job is to make our case in the US, as we have been doing, but to also make sure that we continue to make the best decisions that we can for Australia,” he said.
The Greens communications spokesperson, Sarah Hanson-Young, said Australians “won’t be bullied by Trump’s tech oligarchs”, a reference to Musk’s closeness to the new president.
“As a sovereign and independent country, Australia has the right to make laws that represent our values as a fair society and protect our citizens online. We will not allow tech billionaires to undermine measures that keep our communities safe and cohesive,” she said.