Trump Advances Global Duty-Free Digital Trade Plan with Southeast Asian Allies
The U.S. administration is spearheading a WTO-backed initiative to permanently exempt digital goods from tariffs, building on a moratorium first enacted in 1998. Recent agreements with Malaysia and Cambodia, plus a pending deal with Thailand, create a firewall against taxation of American tech firms in emerging markets.
At stake is the $33 trillion digital economy, where AI-driven services now account for 15% of global exports. The WHITE House aims to lock in protections for e-commerce platforms, cloud services, and digital content providers before the WTO's biennial review deadline.
Bloomberg reports the strategy embeds digital trade clauses within broader tariff agreements. This comes as China pushes alternative frameworks through its Digital Silk Road initiative, setting the stage for a geopolitical tug-of-war over the rules governing cross-border data flows.
