Musk, tech giants urge Trump against Australian laws

Musk and tech giants urge Trump to retaliate against Australia’s new digital laws threatening their profits.

In Short

US tech companies, including Elon Musk, are pressuring President Trump to intervene against Australia’s laws that require payments for news content, arguing they harm profits and stifle innovation.

Australia’s Assistant Treasurer has dismissed these claims, stating the laws apply equally to all, while concerns about potential US retaliation continue to influence the Australian government’s proposed tech tax.

US President Donald Trump is facing pressure from major American tech companies, including Elon Musk, to take action against Australia’s federal laws regarding social media and the digital economy.

These tech giants argue that Australia’s proposed laws, particularly the News Media Bargaining Incentive, unfairly threaten their profits by requiring payments to fund Australian news content.

A formal complaint has been submitted to Trump’s trade chief, opening a new chapter in a trade dispute that also involves US pharmaceutical and beef industries urging Trump to impose tariffs to protect American interests.

American streaming services

The Computer & Communications Industry Association (CCIA) has claimed that Australian regulations jeopardise American streaming services and stifle innovation in artificial intelligence by forcing costly compliance on US companies.

The CCIA’s complaint seeks to influence Trump’s potential decision to impose reciprocal tariffs, which could be announced soon. The group, which includes powerful companies like Amazon and Meta, did not call for tariffs on other nations but preferred negotiation for the removal of international trade barriers.

In response, Australia’s Assistant Treasurer Stephen Jones dismissed the claims, asserting that the laws apply equally to all businesses.

The potential for US retaliation has created caution within the Australian government regarding its proposed tech tax. The CCIA has claimed that Australia’s media policy is a discriminatory tax, jeopardising vital funding for local journalism.