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 his 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, including the UK’s digital services tax, also “outrageously give a complete pass to China’s largest tech companies”.
Trump’s threat puts pressure on the UK and EU, 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 criticized the UK’s digital services tax, 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 digital services taxes around the world are having on US 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.”
This move could potentially hit the UK’s digital services tax, which raises about £800m annually from global tech companies through a 2% levy on revenues.
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 neighbor.
Trump’s aggressive posture on tariffs has raised concerns about the potential consequences for the global economy.
His threat of tariffs on countries targeting US tech companies is the latest escalation in the ongoing trade dispute between the US and other countries.
The US president’s comments come amid a broader trend of increasing tariffs and trade tensions between the US and its trading partners.
“America, and American technology companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the world any longer,” Trump said. “Show respect to America and our amazing tech companies or consider the consequences.”
This rhetoric highlights Trump’s determination to protect US interests and his willingness to take bold action to achieve his goals.
The potential consequences of Trump’s tariffs on countries targeting US tech companies are significant. If implemented, these tariffs could lead to a trade war between the US and other countries, which could have far-reaching consequences for the global economy.
The impact on businesses and consumers could be substantial, leading to increased costs and reduced economic growth.
In conclusion, Trump’s threat of tariffs on countries targeting US tech companies is a significant development in the ongoing trade dispute between the US and other countries.
The potential consequences of these tariffs are substantial, and it remains to be seen how this situation will unfold. One thing is certain, however: Trump’s aggressive posture on tariffs is likely to continue to shape the global trade landscape in the months and years to come.