The "Defending American Jobs and Investment Act" seeks to address foreign countries that impose extraterritorial or discriminatory taxes on U.S. persons and investments. It mandates the Secretary of the Treasury to submit regular reports to Congress, identifying such foreign countries and providing detailed descriptions of the specific taxes, their rates, and effective dates. These reports are required initially within 90 days of enactment and subsequently every 180 days, also noting if any previously listed taxes have been repealed. Upon identifying non-compliant countries, the Secretary is directed to engage in enhanced bilateral discussions with them. The purpose of these engagements is to convey U.S. concerns, advocate for the repeal of these problematic taxes, and inform the foreign countries of potential remedial actions. A key remedy involves increasing U.S. income and withholding tax rates on "applicable persons"—citizens and corporations—from these non-compliant countries. These increases would escalate by 5 percentage points annually , potentially reaching a maximum of 20 percentage points , and would apply after a 180-day grace period, explicitly overriding existing tax treaty obligations. In addition to tax rate increases, the bill authorizes other significant remedial measures. The President gains the authority to prohibit the federal government from procuring goods or services from entities associated with listed foreign countries. Furthermore, the Secretary of the Treasury must consider these extraterritorial and discriminatory taxes when evaluating whether to enter into or update bilateral tax treaties. Similarly, the U.S. Trade Representative and the Secretary of Commerce are required to factor these taxes into negotiations for free trade agreements and executive trade agreements. The bill provides specific definitions for the targeted taxes. An "extraterritorial tax" is defined as a tax imposed by a foreign country on a corporation based on income or profits of a person connected through ownership, excluding direct ownership by the corporation. A "discriminatory tax" is broadly characterized as a tax that applies to non-sourced income, is not based on net income, disproportionately targets non-residents or foreign entities, or is not treated as an income tax under the foreign country's laws or double taxation agreements. However, certain generally applicable taxes, such as withholding taxes, value-added taxes (VAT), sales taxes, and property taxes, are explicitly excluded from the definition of discriminatory taxes.