In an already fraught era of global relations, digital service taxes are once again surfacing as a flashpoint in U.S. trade policy, threatening to widen fault lines between Washington and key trading partners.

DSTs are designed to capture tax revenue from companies with no significant physical presence in the countries where they operate online and interact with foreign users and their data. The levies target multinational internet-based platforms, such as social media and advertising networks, for revenue. In practice, that means many of America’s largest tech companies, including Amazon, Apple, Google, and Meta, may be taxed where they have little political representation. There are tens of countries around the globe either proposing, pausing, or enforcing a DST.