economy

President Donald Trump’s administration has launched an ambitious initiative designed to secure tariff-free access for U.S. tech giants to global digital markets. Washington has signed new digital trade agreements with Malaysia, Cambodia, and Thailand, binding these nations not to impose digital taxes or restrict U.S. companies such as Amazon, Google, Meta, or Microsoft.

The U.S. Seeks a Permanent Global Ban on Digital Tariffs
According to the White House, the United States is moving to make the WTO moratorium on digital tariffs permanent, which until now has been renewed every two years since 1998. The agreement prevents countries from imposing customs duties on cross-border digital transfers of data, software, books, movies, and games.
Malaysia has further pledged not to require U.S. social media and cloud providers to pay into local digital funds, granting Washington a clear advantage.
Andrew Wilson of the International Chamber of Commerce hailed the move as “crucial for strengthening free digital trade,” but warned that it may contradict the global data localization trend — the idea that nations should keep their digital infrastructure and data within their own borders.

Digital Trade Now Worth Over $33 Trillion
According to UN data, global exports of digital services reached $4.77 trillion in 2024, representing a 10% year-over-year increase.

The total value of the digital services sector now exceeds $33 trillion, making it the fastest-growing segment of global trade.
Emerging technologies, especially artificial intelligence, are accelerating digitalization and automation but also fueling concerns about cybersecurity, data protection, and national sovereignty.

U.S. vs. China: The Battle for Digital Influence
As China expands its reach in Africa, Asia, and Latin America, the United States is working to define a global “digital order” based on American rules and technology. Trump’s push for a tariff-free digital trade framework is seen by analysts as a clear attempt to cement U.S. technological dominance.
“Washington wants a world where American technologies and platforms set the standards,” said Martina Ferracane of Teesside University.
The European Union, however, is taking the opposite route — strengthening privacy protections, antitrust enforcement, and digital taxation. France recently doubled its tax on major tech firms, sparking tensions with the White House.

WTO and the Upcoming Battle Over Digital Trade Rules
Emerging economies like India and Brazil continue to resist a permanent WTO moratorium, seeking to protect their domestic industries. The upcoming WTO ministerial meeting in Cameroon in 2026 is expected to become a key battleground for the future of global digital trade.
Meanwhile, Washington has warned the EU that its new Digital Markets Act (DMA) and Digital Services Act (DSA) could damage transatlantic relations if not revised. U.S. companies such as Apple and Meta argue that European regulations stifle innovation and restrict freedom of expression.

Conclusion: A Borderless Digital Economy?
The Trump administration makes no secret of its ambition to build a global, tariff-free digital economy that would strengthen American corporations and reshape international trade rules.

While Europe and Asia fight for data control, the United States envisions an open, dollar-backed, tech-driven digital ecosystem.

If Washington succeeds, the U.S. could gain a decisive edge in the world’s new “digital race.”


#TRUMP , #AI , #blockchain , #USPolitics , #economy

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

In the wake of the Fed’s latest 25 bps rate cut, U.S. Treasury Secretary Scott Basent has delivered a rare and fiery critique of the central bank — openly challenging its credibility and forecasting approach.

While acknowledging that the rate reduction was “a step forward,” Basent accused the Federal Reserve of being “anchored in outdated thinking,” arguing that its economic models no longer reflect today’s financial realities. He claimed that the Fed’s inflation and growth projections have repeatedly missed the mark, calling for a complete overhaul of how policy decisions are made.

💥 Leadership Change on the Horizon?
Basent revealed that a second phase of internal evaluations is scheduled for December — a move many insiders see as an early sign that Jerome Powell’s replacement could be selected before Christmas. Behind the scenes, it appears the groundwork for a leadership transition has already begun.

📉 Key Points of Contention:

1. Lagging Rate Policy: The Treasury argues that the Fed is reacting too slowly to economic shifts.


2. Internal Discord: Conflicting data and policy disagreements are paralyzing decision-making.


3. Outdated Forecasting Models: The Fed’s analytical tools, Basent says, fail to capture real-time employment and inflation trends.



Basent stressed that the Federal Reserve now needs a leader unafraid to challenge legacy systems and rebuild its policy framework “from the ground up.”

Meanwhile, in his post-meeting remarks, Chair Powell maintained a cautious tone, citing internal disagreements and the ongoing government shutdown as key obstacles to gathering reliable data — factors that could hinder another rate cut in December.

The escalating tension between the Treasury and the Fed marks a pivotal moment, as the Trump administration appears ready to reshape the future direction of U.S. monetary leadership.

#Powell

In a stunning turn of events, U.S. Treasury Secretary Scott Basent publicly criticized the Federal Reserve just hours after its 25 bps rate cut announcement, calling the central bank’s decision-making “outdated and disconnected from reality.” 💥
Basent acknowledged the rate cut as “a move in the right direction,” but accused the Fed of being “stuck in the past,” saying its economic models “no longer reflect current market dynamics.” He emphasized that the Fed’s inflation and growth forecasts have been consistently wrong, creating uncertainty across financial markets. 📉
What’s fueling speculation even more is Basent’s revelation that a second round of internal interviews will take place in December — a clear signal that the search for Jerome Powell’s successor may already be underway. 👀
According to Basent, the Fed’s current problems stem from three key issues:
1️⃣ Slow policy response — rate cuts lag behind real-time data.
2️⃣ Internal divisions — disagreements among members are stalling decisive action.
3️⃣ Outdated forecasting models — unable to capture new employment and inflation dynamics.
At his post-meeting conference, Chair Powell maintained a cautious tone, citing “uncertainty and limited data” due to the ongoing government shutdown, hinting that another rate cut in December may not happen.
With tensions rising between the Treasury and the Fed, markets are bracing for what could be a major leadership shift before Christmas. 🎄⚡
#FederalReserve #USTreasury #Powell #InterestRates #Markets #BinanceSquare #Economy #USD