WASHINGTON: Former US President Donald Trump on Tuesday warned of sweeping trade retaliation against countries that impose digital taxes or related rules targeting American technology firms, accusing them of shielding Chinese companies while penalizing US giants.
In a post on Truth Social, Trump said such policies were “discriminatory” and would be met with new tariffs and export restrictions.
“As President of the United States, I will stand up to countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology. They also, outrageously, give a complete pass to China’s largest Tech Companies,” Trump wrote. “This must end, and end NOW!”
Global Context
The warning comes amid mounting debates over digital services taxes (DSTs), which dozens of countries levy on revenues earned by multinational tech firms in their jurisdictions. Critics abroad argue that US tech giants such as Meta, Alphabet, and Amazon generate massive profits from their citizens while contributing little in local taxes.
The European Union recently ruled out imposing network usage fees, while Canada backed away from a planned DST this year after pushback from Washington. In 2023, leaders of the Senate Finance Committee cautioned Ottawa that its proposal would “subject innovative American companies to arbitrary discrimination.”
Trump’s comments signal that disputes over digital taxation could once again become a flashpoint in US trade policy, especially if his administration takes a hard line against international efforts to regulate big tech revenues.
