Trump Threatens Tariffs on Countries With Digital Taxes Targeting US Tech

Donald Trump has warned that the United States may impose tariffs and export restrictions on countries that introduce taxes or regulations he says discriminate against American technology companies.

In a statement posted Monday on Truth Social, the US president said: “Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology.” He added that such measures, including the UK’s digital services tax (DST), also “outrageously give a complete pass to China’s largest tech companies.”

The UK’s Digital Services Tax (DST), launched in 2020, places a 2% charge on the revenue of major international tech companies, generating roughly £800 million each year. Similar taxation policies have also been introduced in France, Italy, and Spain, while the European Union has moved forward with broader digital regulations through its Digital Services Act.

Trump warned he would retaliate against countries that continue enforcing these measures. “If these unfair actions are not removed, I will impose significant new tariffs on that nation’s exports to the United States and restrict access to our advanced technologies and semiconductor supplies,” he declared.

The warning follows a joint statement last week in which the US and the EU pledged to work together to address “unjustified trade barriers,” though the EU later clarified it had not agreed to alter its digital regulations.

Earlier this year, Trump signed an executive order titled Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties, which threatened tariffs in response to foreign digital taxes. In April, reports indicated that UK Prime Minister Keir Starmer had discussed lowering the headline DST rate for US tech companies while continuing to apply it to other firms.

Canada scrapped its planned digital services tax in June following criticism from Trump, who called the measure a “direct and blatant” attack.

UK politicians have responded to Trump’s warning, with Liberal Democrat leader Ed Davey calling on the government to stand its ground. He urged the prime minister not to yield to US pressure, saying: “The prime minister must make it clear that Britain will not give in to Donald Trump’s bullying by diluting the digital services tax.”