[victor106]

>Almost all the trade deficit numbers being thrown around by the US administration don't include trade in services which the US generally has a large surplus.

Then why don’t other countries tax US services? I don’t even hear this from anyone in the media too

[nimos]

Countries can and have under the name of "digital services tax". Generally the rates are low and often only cover a subset of things. The US and tech giants have historically pushed back hard on them. This is a reasonably up to date link to the situation in Europe https://taxfoundation.org/data/all/eu/digital-tax-europe-202... Keep in mind many of those are proposed and not implemented.

The real threat to the US IMO is losing marketshare. The stock market has gotten beat up but most of the real pain for the average person is still off in the horizon. Anti-US sentiment is growing quickly, if we enter a full blown global recession/depression I think it could be a real catalyst for large sudden shifts away from US tech companies.

[jarym]

They do - the EU and UK have 'Digital Services Tax' which predominantly targets US social media giants..

[tpetry]

The EU is currently thinking about doing exactly that.

[markus_zhang]

I think that's the nuclear option, at least for China.

[creato]

Aren't these kinds of services already largely banned in China?

[sebmellen]

Yes, and that’s always mysteriously forgotten in these conversations.

Historically, China stole US IP and software, like Windows, en masse. Now they refuse to import our main export product — software — while we import their physical products and software like TikTok.

If we were allowed to export our services to China in exchange, this would be a very different geopolitical moment.

[vkou]

> If we were allowed to export our services to China in exchange, this would be a very different geopolitical moment.

No, it wouldn't, just look at how Canada's being treated. The mothership would just broadcast different excuses.

[sebmellen]

What would it take for Canada to hit 2%?

https://globalnews.ca/news/11050336/canada-defence-spending-...

The US massively subsidizes Canada’s national defense and energy production (crude oil refining).

[vkou]

Thank you for providing me a front-row example of it. There's always one bullshit excuse or another.

In reality, the US suppresses Canada's national defense, because for some weird reason, it doesn't want a heavily-armed neighbor.

As for energy, for every dollar of it that it buys, it derives far more than a dollar of economic utility from it, which is why it's screaming bloody murder at the mere mention of Canada turning off, or adding surcharges at the tap.

All this is why in 2025, one would have to be an utter fool to expect America to keep faith.

[victor106]

I agree, even though I don’t agree with how these tarrifs were implemented I don’t have any sympathy for China. President Trump is absolutely right when he says China took full advantage of the US policies.