CAGW Joins Coalition Opposing Foreign Measures Targeting U.S. Digital Services Companies

March 5, 2026

President Donald J. Trump
1600 Pennsylvania Ave. NW
Washington, DC 20500

Dear President Trump:

We commend your leadership in addressing the growing use of digital taxes, digital services legislation, and digital markets regulation by the European Union (EU) and other governments in ways that disproportionately burden U.S. technology companies and the U.S. tax base.

We applaud the actions you have taken to support U.S. technology leadership. You have acted decisively through your Presidential Memorandum on “Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties” and have delivered strong outcomes on digital issues in your trade deals. You have removed discrimination against U.S. companies and prompted the Canadian government’s elimination of its digital services tax (DST) through sustained bilateral engagement.

However, despite your strong leadership, the EU has continued to advance regulatory, enforcement, and fiscal measures that place a disproportionate burden on American companies.

Since the release of the joint U.S.-EU Statement last August, the European Commission has extended the anticompetitive Digital Markets Act (DMA) to target American cloud services providers, issued damaging fines on Google and X, pursued new policies to impose network usage fees, and is actively targeting U.S. satellite providers.

In addition, U.S. companies continue to face unfair investigations, fines, and taxes in EU member states like Germany, Italy, and France. Taken together, these developments threaten U.S. investment, employment, and the global technological leadership that you have sought to foster.

Moreover, the EU’s digital regulatory approach is increasingly shaping regulatory policies worldwide. Countries including Australia, Brazil, India, South Korea, Turkey, and the United Kingdom have adopted or are considering legislation inspired by the Digital Markets Act and related EU frameworks. In many cases, these approaches disproportionately burden U.S. firms while entrenching domestic incumbents in the respective countries.

Mr. President, we are at a tipping point. The unfair treatment of U.S. industry must be addressed. We firmly believe this is the moment for the U.S. government to act decisively. We encourage you to use all available tools to put a stop to the EU’s punitive actions to ensure U.S. companies can continue to lead around the world.

Sincerely,

National Taxpayers Union
Pete Sepp
Presiden

60 Plus Association
James L. Martin
Chairman

Advancing American Freedom
Joel Griffith
Senior Fellow

American Action Forum
Jacob Jensen
Trade Policy Analyst (Affiliation provided for identification purposes only)

Americans for Tax Reform
Grover Norquist
President

Center for a Free Economy
Ryan Ellis
President

Center for Freedom and Prosperity
Daniel J. Mitchell
President

Center for Individual Freedom
Jeff Mazella
President

Citizens Against Government Waste
Deb Collier
Executive Director, Innovation and Technology Policy Center

Citizens Against Government Waste
Tom Schatz
President

Market Institute
Charles Sauer
President