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Trump’s ‘foreign extortion’ blast opens new front in Canberra’s big tech war

The US President has long chafed against foreign efforts to regulate the American tech sector, which is deeply intertwined with his administration.

US President Donald Trump has long chafed against Australian regulation of American big tech. AP/Evan Vucci.

The Trump administration’s denouncement of Australia’s news bargaining incentive as “foreign extortion” has drawn a new battle line between Washington and Canberra over regulation of American tech giants.

Less than a day after the Albanese government confirmed plans to lump a 2.25% levy on tech giants who walk away from the Australian news market, the White House issued a public warning that it would defend the country’s tech interests.

“President Trump is committed to defending America’s leading technology sector from digital services taxes and other forms of foreign extortion,” White House spokesman Kush Desai said in a statement to Australian media, including Capital Brief, on Wednesday morning.

“The Trump administration will continue to address these issues with our trading partners.”