section_path: Multinational tariffs/Additional proposals/Digital Sales Tax investigation
section_name: Digital Sales Tax investigation
paragraph_text: Digital Sales Tax investigation
  
  On February 21, 2025, Trump issued a presidential memorandum ordering the Office of the United States Trade Representative (USTR) as well as other officials, including Peter Navarro, to investigate digital service taxes (DSTs) and determine whether to take retaliatory action. A fact sheet accompanying the memo emphasized that the European Union's Digital Markets Act (DMA) and Digital Services Act (DSA) would face scrutiny.
  
  DSTs are taxes on revenue from digital services, such as online advertising and selling user data. These taxes allow countries to collect revenue from multinational companies that provide digital services in their jurisdiction. USTR investigations initiated during Trump's first term led to tariff threats on several countries under authority granted by section 301 of the Trade Act of 1974. On October 8, 2021, over 135 countries participating in the OECD negotiations agreed on a two-pillar approach to reform and withdraw DSTs called the " Global tax deal ". The Pillar One deadline was December 31, 2023, but it was subsequently extended to December 31, 2024. As of January 2025, Trump withdrew from Pillar Two of the agreement, and many countries' DSTs remain in effect.