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By Robert Birsel
Reporter
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President Donald Trump has threatened to impose additional tariffs on countries that impose "discriminatory" digital taxes and regulatory requirements on U.S. tech companies.
Why It Matters
The issue of digital services taxes on technology giants, most of which are U.S.-based, has been central to many of the trade negotiations the United States has held with other countries.
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While many countries want to tax the revenue of tech companies generated in those countries, anyone considering doing so risks punitive duties on billions of dollars in exports to the U.S. Some countries also want to be able to regulate content and impose their own data protection measures, which the tech companies and the Trump administration object to.
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What To Know
In a post on his Truth Social platform on Monday evening, Trump said he would "stand up to Countries that attack our incredible American Tech Companies."
He said digital taxes, digital services legislation and digital markets regulations were "all designed to harm, or discriminate against, American Technology."
"This must end, and end NOW!" Trump added.
"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., and institute Export restrictions on our Highly Protected Technology and Chips," he continued.
The president did not name any countries in his post.
It is not the first time Trump has threatened competitors over their taxes on U.S. technology companies.
In February, he issued an executive order "Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties," which threatened tariffs and other retaliatory measures against foreign countries taxing U.S. companies in the digital sector.
In July, Canada, in the midst of difficult trade negotiations with its southern neighbor, halted its plans to begin collecting a new digital services tax targeting U.S. technology firms just hours before it was due to start.
Canadian Prime Minister Mark Carney agreed to rescind the digital services tax on U.S. technology companies after Trump announced that he was suspending all trade talks with Canada over the tax policy.
Last week, Director of National Intelligence Tulsi Gabbard said the U.K. would drop its mandate for Apple to provide an encrypted data "back door" after the policy came under criticism from the tech industry.
What People Are Saying
President Donald Trump wrote on Truth Social: "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!"
What Happens Next
The issue between the U.S. and the EU over the bloc's Digital Services Act remains unresolved. The legislation seeks to regulate online platforms, but U.S. critics say it is designed to silence conservative voices.
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