(The Hill) — President Donald Trump has warned of additional tariffs on nations that maintain digital taxes, claiming they detrimentally affect U.S. technology.
“As the President of the United States, I will confront nations that target our outstanding American Tech Companies. Digital Taxes, Legislative Measures on Digital Services, and Regulations concerning Digital Markets are aimed at damaging or targeting American Technology,” Trump declared on Truth Social on Monday evening.
“They also, outrageously, give a complete pass to China’s largest Tech Companies,” he continued. “This must end, and end NOW!”
The president highlighted that in response to digital services taxes — commonly referred to as DSTs — employed by international partners, he plans to initiate export restrictions on semiconductors among other technologies.
“With this TRUTH, I alert all countries with Digital Taxes, Legislation, Rules, or Regulations that unless these biased actions are abolished, I, as President of the United States, will levy substantial additional Tariffs on that country’s exports to the U.S.A., and enforce export restrictions on our Highly Protected Technology and Chips,” Trump continued.
He further stated, “America, and American Technology Companies, refuse to be the ‘piggy bank’ or the ‘doormat’ of the World any longer. Show respect to America and our remarkable Tech Companies or face 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.
In June, Canada was about to implement a new tech tax but retracted when Trump halted trade discussions with its northern neighbors over the initiative. When Ottawa decided to drop its DST, U.S.-Canada trade dialogue resumed.
