‘US not piggy bank or doormat’: Donald Trump fresh tariff threat for nations with digital taxes; warns of consequences
US President Donald Trump on Tuesday threatened sweeping new trade measure against countries that impose digital taxes and related rules targeting American technology giants while giving a “complete pass” to Chinese tech companies.In a post on Truth Social, Trump warned that “discriminatory” policies would be met with tariffs and restrictions on advanced exports.“As the 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 said.“This must end, and end NOW!” he added.Trump added that he was placing all governments with such policies “on notice.” Unless they removed these measures, Trump wrote, the United States would “impose substantial additional Tariffs on that Country’s Exports to the USA, and institute Export restrictions on our Highly Protected Technology and Chips.”He stressed, “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!”According to news outlet Bloomberg, Trump’s warning comes shortly after the US and the European Union issued a joint pledge not to adopt unjustified trade barriers or impose customs duties on electronic transmissions. The EU also confirmed it would not move ahead with network usage fees.Critics abroad argue that tech giants reap billions in profits from their citizens while paying little tax locally, making DSTs a way to ensure fairer contributions.According to CNBC, dozens of countries currently impose digital services taxes (DSTs), which typically affect major US firms such as Meta, Alphabet and Amazon. Canada had planned to introduce one this year but pulled back following US pressure.In 2023, leaders of the Senate Finance Committee also warned that Ottawa’s proposal would “subject innovative American companies to arbitrary discrimination.”
