US President Donald Trump has warned of imposing "substantial" new tariffs to curb American chip exports to countries that levy digital services taxes or enforce related regulations targeting US tech firms.
Trump has been pushing trade partners to scrap these taxes, which largely affect major technology companies such as Alphabet, Meta, and Amazon, most of which are American.
Posting on his Truth Social platform, Trump declared that as President, he will defend US technology companies from discriminatory policies.
"Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm or discriminate against American Technology," he wrote.
"They also, outrageously, give a complete pass to China's largest Tech Companies. This must end, and end NOW!"
'US would impose more restrictions'
Trump further stated that the US would “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,” he 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 issued a joint statement pledging to “address unjustified trade barriers” and to “not impose customs duties on electronic transmissions.” The EU also confirmed it would not introduce network usage fees.
Digital taxes have become a flashpoint in trade negotiations for the Trump administration. In June, the US announced it would halt all trade talks with Canada over such measures.
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