President Trump threatened to impose additional tariffs on countries that don’t remove digital taxes, arguing they harm technology from the U.S.
“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 said on Truth Social on Monday night.
“They also, outrageously, give a complete pass to China’s largest Tech Companies,” he continued. “This must end, and end NOW!”
The president noted that in retaliation against digital services taxes — known as DSTs — used by trading partners, he will put export restrictions on semiconductors and other technology.
“With this TRUTH, 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 added.
He also said that “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!”
Trump has put pressure on other countries to drop DSTs, arguing that they discriminate against U.S. tech giants like Amazon, Meta and Alphabet.
Canada in June was set to require the first payment of a new tech tax but walked it back when Trump suspended trade talks with the neighbors to the north over the plans. When Ottawa moved to cancel its DST, U.S.-Canada trade talks resumed.
