Trump pledges to punish countries imposing digital taxes

2025-08-30 07:41:19

(MENAFN) On Monday, US President Donald Trump warned of potential “substantial” tariffs and tighter semiconductor export controls on countries that implement digital taxes and regulations he claims discriminate against American tech companies. Digital services taxes (DSTs), which have been adopted by many nations, are designed to extract revenue from the largest global tech firms, with Trump arguing that they unfairly target US companies like Meta, Alphabet, and Amazon.

In a post on his Truth Social platform, Trump criticized “Digital Taxes, Legislation, Rules, or Regulations,” suggesting that the US could impose new tariffs and strengthen export restrictions on American technologies. He emphasized that the US and its companies would no longer serve as the world’s “piggy bank” or “doormat.”

“As President, I will stand up to countries that attack our incredible American tech companies,” Trump declared, stressing that these measures are intended to harm or discriminate against US technology. He also criticized how such policies give “a complete pass” to China’s leading tech companies, calling for an immediate end to these practices.

Trump’s comments could escalate trade tensions with the UK and EU, which have both recently reached agreements with the US. US officials have already criticized the UK's digital services tax, which was left in place despite a deal with the Trump administration, and have raised concerns over the EU’s Digital Services Act, which demands that tech firms more rigorously manage their platforms. France, Italy, Spain, and other EU nations also impose their own DSTs.

The digital services tax issue has become a key point in Trump’s trade policy. In June, he threatened to halt talks with Canada over a similar tax, leading Canada to back down just before the measure was set to take effect, resulting in a US victory in the dispute.

Proponents of digital taxes argue that they are justified because tech giants like Amazon make large profits from local markets without contributing proportionally to national tax revenues.

MENAFN30082025000070015687ID1109996405

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.