The US President has asserted that these charges unfairly benefit Chinese technology companies.
On Monday, former US President Donald Trump issued a warning of significant new tariffs and restrictions on semiconductor exports for nations that uphold digital taxes and regulations he deems discriminatory toward American technology companies.
Digital Services Taxes (DSTs), implemented in numerous countries, aim to generate revenue from major global tech corporations. Trump has consistently contended that these levies unfairly single out American companies, specifically mentioning Meta, Alphabet, and Amazon, and has urged US trade partners to discontinue them.
Through a post on his Truth Social platform Monday, Trump vehemently criticized “Digital Taxes, Legislation, Rules, or Regulations,” cautioning that he might enact further tariffs and strengthen export controls on US technologies. He emphasized that the United States and its businesses would cease to be the world’s “piggy bank” or “doormat.”
“As the President of the United States, I will confront countries that target our exceptional American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all formulated to harm or discriminate against American Technology,” Trump stated.
He expressed dissatisfaction, asserting that such policies “provide a complete pass to China’s largest Tech Companies” and proclaimed, “this must end, and end now.”
This aggressive stance threatens to rekindle trade disputes with both the United Kingdom and the European Union, even though both have recently finalized agreements with Washington. US officials have consistently voiced disapproval of Britain’s digital services tax, which persisted despite its arrangement with the Trump administration, and have also targeted the EU’s significant Digital Services Act, which mandates tech companies to more stringently regulate their platforms. Multiple EU member states, among them France, Italy, and Spain, continue to impose their own digital services taxes.
Digital services taxes have already proven to be a contentious issue in Trump’s trade policy. In June, he warned of suspending all negotiations with Canada. Ottawa capitulated just prior to the measure’s scheduled implementation, leading the White House to declare that Canada had “caved” under US pressure.
Nations implementing digital services taxes contend that these charges are legitimate, given that technology behemoths like Amazon generate substantial profits from their populace while contributing minimal or no tax revenue to local treasuries.