February 06, 2025
It's Thursday ... We've got the latest digital trade talk from today's U.S. trade representative confirmation hearing.
🗓 Save the date: Axios returns with our fourth annual What's Next Summit in Washington, D.C, on Tuesday, March 25 for a day of insightful conversations with disruptors who are at the forefront of seismic shifts in how we work, play, and live. Interested in attending? More info here.
👀 Situational awareness: Senate Commerce Committee Chair Ted Cruz met today with President Trump's AI and crypto czar David Sacks, per a committee aide.
1 big thing: USTR pick Greer promises aggressive digital trade agenda
Jamieson Greer, President Trump's nominee to lead the Office of the U.S. Trade Representative, told the Senate Finance Committee today that he's planning to ramp up digital trade efforts, Maria reports.
Why it matters: Greer presents a fresh opportunity for reviving digital trade.
- Biden's U.S. trade representative faced criticism from members across both sides of the aisle, as well as U.S. companies, for dropping cross-border data flow demands and not defending firms from foreign taxes.
At today's confirmation hearing, Chair Mike Crapo said the U.S. "lost ground during the last administration because we turned our back on digital trade rules."
- That then led others like the EU and South Korea to target tech companies with taxes while exempting their domestic companies or Chinese firms, Crapo added.
Greer said he "strongly believes" the U.S. needs to take on these issues again.
- "This is an area where the United States is very competitive, and I understand that we are having a domestic conversation about how to regulate digital trade and technology companies."
- "We should not be outsourcing our regulation to the European Union or Brazil or anyone else. They can't discriminate against us, and it won't be tolerated."
Greer said the U.S. trade representative needs to explore Section 301 to combat digital services taxes, an approach then-U.S. Trade Representative Robert Lighthizer took in the first Trump administration that resulted in threats to impose billions of dollars worth of tariffs.
- Greer served as Lighthizer's chief of staff.
Greer said semiconductors are at the top of his list in terms of products that need to be brought back to the U.S.
- "Obviously, technologies like AI and quantum computing, we need to be ahead of the game here," Greer said.
The big picture: Tariffs are a favorite tool of Trump, and Big Tech players that have cozied up to the administration could try to use that to their advantage against EU regulations and billions of dollars worth of fines.
- After citing findings that Trump's former U.S. trade representative exempted companies from tariffs that made political contributions, Sen. Elizabeth Warren asked Greer if "favoring companies with deep pockets and political connections" was good trade policy.
- "Of course not," responded Greer.
- He said that any type of exemption program "needs to be transparent and have the rules outlined, which it did."
What we're watching: USMCA and its digital trade provisions are up for renegotiation in 2026, and industry players are planning to push for the expansion of those rules to combat digital trade taxes.
- Sen. Marsha Blackburn, pointing to the innovators and entertainers in her home state of Tennessee, said protecting intellectual property is crucial and asked Greer to submit a plan to her office on how to do that.
2. What we're hearing: Krishnamoorthi on TikTok, DOGE
Rep. Raja Krishnamoorthi sat down with Maria at Axios' News Shapers event yesterday, weighing in on what's next for TikTok, export controls and more.
The big picture: Krishnamoorthi has been reappointed as the ranking member of the House China Select Committee for this Congress, and is set to keep playing a leading role investigating and shaping legislation related to Beijing.
- He introduced the TikTok sale-or-ban bill last year, and President Trump issued an executive order to stop enforcement until early April.
Here are some key quotes from Maria's conversation with Krishnamoorthi.
On TikTok: "I expect that a sale will happen and I hope that the president brokers the sale."
- "You said Oracle is hosting TikTok now. But on the other hand, TikTok is not in the Apple or Google Play store. And so different companies are kind of doing different things."
- "All that being said, right now, the best conclusion will be for ByteDance to sell TikTok and the CCP has opened the door for that."
Export controls: "I'd like to see some of those export controls and those outbound investment restrictions that were executive orders under the Biden administration actually become legislation."
- "And there is a lot of activity in that regard on a bipartisan basis."
- "The outbound legislation that almost made it into the CR in December is now the subject of negotiation again."
DOGE: "I think that the idea of a Department of Government Efficiency and making government more efficient makes all the sense in the world."
- "However, if we're going to have a situation where DOGE again is going to make decisions about AI policy or make decisions about quantum that favor certain incumbents or that isn't conducted in a transparent way, that's when we have problems."
✅ Thank you for reading Axios Pro Policy, and thanks to editors Mackenzie Weinger and David Nather and copy editor Bryan McBournie.
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