US President Donald Trump has warned that his administration will impose “substantial” new tariffs and restrict American chip exports against countries that enforce digital services taxes or regulations on US technology companies.
The threat, delivered in a fiery post on Trump’s Truth Social platform, underscores the White House’s growing frustration with what it sees as discriminatory policies aimed at Silicon Valley’s largest firms, including Alphabet, Meta, and Amazon.
“Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm or discriminate against American Technology,” Trump declared. “They also, outrageously, give a complete pass to China’s largest Tech Companies. This must end, and end NOW!”
Tariffs and Export Restrictions
Trump announced that Washington would respond to such measures not only with retaliatory tariffs but also by curbing the export of advanced American chips and high-tech components—industries seen as vital to global supply chains.
“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations on notice,” he wrote, “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.”
The president added:
“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer. Show respect to America and our amazing Tech Companies or, consider the consequences!”
Global Tensions Over Digital Taxes
Digital services taxes (DSTs) have become a flashpoint in trade relations. Several countries, including France, Canada, and India, have sought to impose levies on revenue generated by foreign digital platforms within their borders, arguing that US tech giants profit heavily from their markets without paying sufficient tax locally.
The United States has long opposed such taxes, viewing them as unfairly targeting American firms while giving Chinese platforms like Tencent and Alibaba more room to grow. Trump’s latest remarks suggest he is willing to use tariffs and export controls as leverage to force governments to retreat from these measures.
European Union’s Position
The warning comes just a week after Washington and Brussels issued a joint statement pledging to cooperate on digital trade. Both sides agreed not to impose customs duties on electronic transmissions and to resist “unjustified trade barriers.” The European Union also confirmed it would not move forward with so-called network usage fees, which telecom operators had pushed as a way to charge major tech firms for heavy internet traffic.
Ongoing Trade Negotiations
Trump has already shown he is prepared to act decisively: in June, his administration cut off trade talks with Canada over Ottawa’s proposed digital tax. Analysts say the issue could become a central fault line in US trade policy, shaping relations not only with Europe but also with key Asian economies.
By tying digital taxes to restrictions on chip exports, Trump is placing the world’s most sought-after technologies at the heart of his economic diplomacy. The move may escalate tensions with allies but could also push countries to reconsider their tax policies in order to maintain access to critical American technologies.
Outlook
For now, Trump’s threat is a warning rather than a policy announcement. But with trade talks already strained and the global chip industry facing fierce competition, the prospect of new US restrictions adds further uncertainty.
As digital taxation spreads, the coming months may determine whether the world moves toward a cooperative framework on tech regulation—or slides into a new cycle of tariff battles with Washington at the centre.
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