- US President Trump threatened new tariffs on countries with digital services taxes on US tech firms
- Trump claims digital taxes and regulations discriminate against American technology companies
- He accused these policies of favouring China's largest tech companies unfairly
US President Donald Trump has threatened to impose "substantial" new tariffs to restrict American chip exports to all countries that impose digital services taxes and related regulations on US tech firms. The US leader has been trying to pressure trade partners into dropping the taxes, which typically apply only to some of the largest and most established tech companies, like Alphabet, Meta, and Amazon-- most of whom happen to be American.
Taking to his Truth Social platform, Trump said that as the President of the United States, he will stand up to countries that attack "incredible American Tech Companies."
"Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm or discriminate against American Technology," he posted.
"They also, outrageously, give a complete pass to China's largest Tech Companies. This must end, and end NOW!"
He added that America would also "institute Export restrictions on our Highly Protected Technology and Chips."
"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," Trump posted.
"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!"
The warning comes a week after the US and the European Union agreed in a joint statement that they would together "address unjustified trade barriers," and would "not impose customs duties on electronic transmissions." The 27-member bloc also confirmed it wouldn't adopt network usage fees.
Digital taxes have been emerging as a potential make-or-break issue for the Trump administration's ongoing trade negotiations. In June, the US announced it would cut off all trade talks with Canada over such taxes.
