US President Donald Trump on Monday threatened countries that impose digital taxes with “subsequent additional tariffs” on their exports to the United States. He said the penalties would remain unless such legislation was removed.
In a post on Truth Social, Trump warned that “discriminatory” policies would be met with tariffs and restrictions on advanced exports.
“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. They also, outrageously, give a complete pass to China’s largest Tech Companies,” Trump said.
“This must end, and end NOW!” he added.
He added, “Show respect to America and our amazing Tech Companies or, consider the consequences!”
Arguing against digital taxes
In the same post, Trump described digital services taxes as discriminatory measures. “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” he wrote. He went further to claim that such rules “outrageously, give a complete pass to China’s largest Tech Companies. This must end, and end NOW!”
Trump insisted that his response would not stop at tariffs, warning that the US would also “institute Export restrictions on our Highly Protected Technology and Chips.”
A long-standing dispute
Digital service taxes are levies applied to revenue generated by large technology platforms in foreign markets. While dozens of countries have explored or adopted such measures, the taxes primarily affect US giants such as Meta, Alphabet, and Amazon.
Trump has frequently clashed with allies over these rules. In June, he declared that the US would halt all trade talks with Canada after Ottawa introduced its own digital tax. Days before it was due to take effect, Canada withdrew the measure. The White House later said Canada had “caved” to pressure.
This warning comes after the US and the European Union pledged not to adopt unjustified trade barriers or impose customs duties on electronic transmissions, according to Bloomberg News. The EU also said it would not implement network usage fees.
Critics of US tech giants argue that they make billions in profits but pay little tax locally. They view Digital Services Taxes (DSTs) as a way to ensure fairer contributions.
CNBC reports that many countries currently have DSTs, which typically affect major US firms like Meta, Alphabet, and Amazon. Canada had planned to introduce a DST this year but stopped after pressure from the US.
In 2023, leaders of the Senate Finance Committee warned that Canada’s proposal would “subject innovative American companies to arbitrary discrimination.”
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