Then why don’t other countries tax US services? I don’t even hear this from anyone in the media too
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.
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.
No, it wouldn't, just look at how Canada's being treated. The mothership would just broadcast different excuses.
https://globalnews.ca/news/11050336/canada-defence-spending-...
The US massively subsidizes Canada’s national defense and energy production (crude oil refining).
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.
However, as a matter of industrial economic reality, NAFTA likely benefited Canada more than it did the US, and the US does subsidize NATO and Canadian defense by extension. What barriers are there to an independent Canadian defense industry?
(Although I would argue that NAFTA benefited both countries, and we should continue our free trade agreements!)
A defense industry is intertwined with a industry for civilians, for example in aeronautics. Certain nearby trading partners have historically stymied attempts to maintain such an industry.