US President Donald Trump has vowed to impose substantial new tariffs and curbs on semiconductor exports against countries that maintain digital taxes and regulations he claims unfairly target American tech firms. The move comes as a response to perceived discrimination against American companies by digital services taxes, which he argues give China’s tech firms a free pass.
In a post on his Truth Social platform on Monday, Trump criticized digital taxes, legislation, and regulations, warning of additional tariffs and tighter export controls on American technologies. He emphasized that the US and its firms would no longer serve as the ‘piggy bank’ or ‘doormat’ of the world, vowing to protect American tech companies from what he calls discriminatory measures. "As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology," Trump wrote.
The salvo risks reigniting trade tensions with the UK and EU, despite both having recently struck agreements with Washington. US officials have repeatedly criticized Britain’s digital services tax, which remained in place after its deal with the Trump administration, and have also taken aim at the EU’s landmark Digital Services Act requiring tech firms to more aggressively police their platforms. Several EU states, including France, Italy and Spain, maintain digital services taxes of their own.
Digital services taxes have already emerged as a flashpoint in Trump’s trade agenda. In June, he threatened to halt all talks with Canada. Ottawa backed down just before the measure was due to take effect, prompting the White House to boast that Canada had "caved" to US pressure.
Countries that impose digital services taxes argue the charges are justified because tech giants such as Amazon reap huge profits from their citizens while paying little or no tax to local budgets.
Trump’s threat underscores his long-standing criticism of the digital services taxes, which he claims are a form of economic protectionism. He has repeatedly pressed US trade partners to abandon the levies, arguing that they unfairly target American companies and give an unfair advantage to foreign competitors, notably China’s tech firms.
The issue has sparked concerns among global policymakers, who have expressed fears that Trump’s aggressive stance could lead to an escalation of trade disputes. Analysts warn that the potential imposition of new tariffs could have significant economic repercussions for both the US and its trading partners.
Meanwhile, the tech industry has been urged to monitor developments closely, as the Trump administration’s position could have a lasting impact on the global digital economy. The standoff over digital services taxes highlights the complex and often contentious nature of international trade negotiations in the tech sector.
The White House’s position also reflects broader tensions between the US and its allies over regulatory frameworks governing digital markets. With the global tech landscape becoming increasingly intertwined, the outcome of this dispute could have far-reaching implications for the future of international commerce and digital services taxation.
As the situation develops, it is likely to continue shaping the evolving narrative around digital economies and global trade relations, with the potential for significant economic outcomes and policy changes in the years to come.