Bad news for Turkey from US President Trump

US President Donald Trump continues to take tough and radical steps in economic policy since the day he took office. Most recently, he signed a regulation that provides for the imposition of tariffs against taxes introduced by foreign governments, such as digital services taxes applied to American companies. This step closely concerns many countries, primarily European Union member states and Turkey.

ALLEGATIONS OF BULLYING AMERICAN COMPANIES

In a statement from the White House, it was stated that the Trump administration took this decision with the aim of protecting American companies from "bullying" abroad. The statement noted that the Office of the United States Trade Representative has been authorized to renew investigations into digital services taxes initiated during Trump's first term and will place countries that discriminate against American companies under scrutiny.

In particular, the European Union's regulations for the digital economy, the Digital Markets Act and the Digital Services Act, will be reviewed by the Trump administration. Washington argues that these laws impose unfair taxes on American companies and hinder commercial competition.

TURKEY'S DIGITAL SERVICES TAX HAS BEEN IN EFFECT FOR FIVE YEARS

The digital services tax, which entered into force in Turkey in 2019, is applied when revenues obtained from digital services exceed certain thresholds. It is stated that a total of 41.3 billion TL in revenue has been generated under this tax, which has been in effect in Turkey for five years. The decision taken by Trump could cause many countries, including Turkey, to face off against Washington regarding digital services taxes.

SANCTION RESTRICTIONS ON CHINA

On the other hand, Trump also signed another regulation restricting China from investing in the strategic sectors of the US. In a statement from the White House, it was stated that this decision was taken for national security reasons. Accordingly, serious restrictions will be imposed on Chinese investments, primarily in the technology, critical infrastructure, health, agriculture, energy, and raw materials sectors.

The Committee on Foreign Investment in the United States (CFIUS) will establish stricter oversight mechanisms to block China's investments in these areas. The statement emphasized that new rules will be introduced to prevent American capital and technology from being misused by foreign competitors such as China.

News Source: 12punto