Trump allies label media bargaining code a 'shakedown'

A US group allied with the Trump administration has accused Australia's new media bargaining code of being a shakedown, potentially leading to increased tariffs for the country. The federal government's proposal, which passed parliament on Thursday with the Greens' support, requires digital platforms to pay a 2.5% levy on their digital advertising revenue if they fail to negotiate deals with Australian news outlets for their content.

Americans for Tax Reform, a US advocacy group, called the measure unfair and urged President Donald Trump to impose higher tariffs on Australia. The Australian government counters that the code aims to support journalism and ensure its viability, particularly for regional journalists, small to medium publishers, and under-represented communities.

The distribution scheme loading for these groups has been increased from 10% to 20%. Prime Minister Anthony Albanese expressed confidence that the US wouldn't raise tariffs due to the relationship between the two leaders. The US Trade Representative has the authority to investigate and respond to practices that may harm American commerce and this proposal meets those criteria.