Trump threatens additional tariffs for countries with digital taxes

President Donald Trump on Tuesday threatened to impose “substantial additional tariffs” on the exports of countries to the US that impose digital taxes and regulations to “harm American technology companies”.

He also warned of imposing restrictions on the exports of US technology and chip unless these measures are repealed.

“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country's Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips,” Trump said in a statement on Truth Social.

The US President declared that “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations” unfairly target American technology companies while giving a “complete pass” to China’s largest tech firms.

“They are designed to harm, or discriminate against, American Technology,” Trump stated, emphasising that such policies “must end, and end NOW!”

He warned that countries maintaining these “discriminatory actions” will face severe economic consequences, including tariffs and export controls on advanced US technology.

“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” he added.

The President’s statement puts nations with digital services taxes or regulatory frameworks, such as the European Union’s Digital Markets Act and Digital Services Act, on notice.

Trump’s remarks signal a hardline stance to protect US tech firms like Alphabet, Meta, and Amazon, which he described as “incredible” and vital to US interests.

The exclusion of Chinese tech companies from these foreign regulations was a key point of contention, with Trump calling it “outrageous.”

The threat of tariffs and export restrictions, particularly on semiconductors, could escalate trade tensions with allies like France, Canada, and the UK, which have adopted or considered digital taxes.