Business & Finance

Trump Threatens Tariffs Over Digital Taxes Targeting U.S. Tech Giants

Former U.S. President Donald Trump warns of heavy tariffs and export restrictions in retaliation against nations imposing digital taxes on American tech firms.

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POLITIS NEWS

Former U.S. President Donald Trump has issued a stern warning to countries he claims are unfairly targeting American tech companies through digital taxes and regulatory measures. In a statement posted on Truth Social, Trump suggested the U.S. could impose major tariffs and technology export restrictions if such policies are not reversed.

“Digital services taxes and market regulations are being crafted to discriminate against and harm American companies,” Trump said, accusing foreign governments of taking aim at U.S. technology leaders.

Europe and the UK in the Crosshairs

Trump’s comments appeared to specifically target European nations and organizations that have introduced legislation to tighten oversight on the digital economy.

The European Union has implemented key regulations such as the Digital Markets Act (DMA) and the Digital Services Act (DSA), frameworks designed to promote fair competition and regulate content and commerce on major online platforms.

Meanwhile, the United Kingdom continues to impose a digital services tax, which primarily affects large tech firms, most of them American,  operating in its market.

Threat of Tariffs and Export Controls

Trump made it clear that unless these “discriminatory” measures are repealed, the U.S. would consider retaliatory actions, including:

  • Heavy new tariffs on imported goods from countries enacting such laws

  • Export restrictions on critical technologies and semiconductors

“America and its tech companies are no longer the world’s piggy bank or doormat,” Trump declared.

Fallout with Canada

The former president also referenced a recent breakdown in trade talks with Canada, following Ottawa’s proposed digital services tax, a move that would have significantly affected American multinationals such as Alphabet, Amazon, and Meta.

After Trump’s abrupt cancellation of trade discussions in June, Canada quickly walked back the proposed tax, scrapping the plan just days later.

 

With information from CNA

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