U.S. President Donald Trump has warned that he may implement “booming” additional tariffs on American semiconductor exports to nations that apply digital services taxes or similar laws against U.S. technology firms.
His administration has been trying to convince global trading partners to rescind those kinds of taxes, which mostly affect major companies like Alphabet, Meta, and Amazon, many of which are based in the U.S.
In a post on his Truth Social account, Trump said that as President, he will “protect” “incredible American Tech Companies” from countries that he believes are targeting the companies unfairly.
"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!"
This latest warning was issued just one week after Washington and the EU released a joint statement saying they were determined to "address unjustified trade barriers," and also committed to "not impose customs duties on electronic transmissions." Additionally, the EU's 27 member states confirmed that they would not impose network usage fees.
Digital service taxes have been a growing sticking point for the Trump administration during trade negotiations. In June, the US announced it was terminating trade talks with Canada over this issue.
The warning comes a week after the US and EU released a joint statement committing to address "unjustified trade barriers," and agreeing they "shall not impose customs duties on electronic transmissions." Also, the 27-member EU bloc confirmed an intention to not implement network usage fees.
Digital service taxes have increasingly become a focal point in trade discussions for the Trump administration. In June, the US announced it was halting all trade discussions with Canada over the issue.
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