Donald Trump has threatened to impose tariffs and export restrictions on countries whose taxes, legislation and regulations target US big tech companies such as Google, Meta, Amazon and Apple.
In a post on the US president’s social media platform, Truth Social, Trump said “digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology”.
He added that such measures, which includes the UK’s digital services tax that raises about £800m annually from global tech companies through a 2% levy on revenues, also “outrageously give a complete pass to China’s largest tech companies”.
“As the president of the United States, I will stand up to countries that attack our incredible American tech companies,” said Trump. “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 USA, and institute export restrictions on our highly protected technology and chips.”
Trump’s threat puts pressure on the UK and EU – which also has in place regulations to curb the power of big tech companies through the Digital Services Act – which both struck recent trade agreements with the US.
Several EU member states, including France, Italy and Spain, also have digital services taxes in place.
US officials have criticised the UK’s digital services tax (DST), which has been in place since 2020, although it was kept in place after the deal with the Trump administration that was reached in May.
Trump has complained about the impact that DSTs around the world are having on US companies.
In February, he issued an executive order – titled Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties – threatening tariffs in retaliation.
In April, it emerged that Keir Starmer offered big US tech companies a reduction in the headline rate of the DST to placate Trump, while at the same time applying the levy to companies from other countries.
“America, and American technology companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the world any longer,” Trump said on Monday. “Show respect to America and our amazing tech companies or consider the consequences.”
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The warning from the president comes a week after the US and the EU agreed in a joint statement that they would together “address unjustified trade barriers”.
However, the EU said separately that it had not committed to alter any digital regulations.
In June, Canada scrapped its digital services tax, which Trump had described as a “direct and blatant” attack, in an effort to smooth trade negotiations with its neighbour.
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