Donald Trump, the President of the United States, has come down hard against these digital services taxes, which several countries have rolled out on American companies. He claims that these provisions discriminate against American technology firms. In a recent post on Truth Social, Trump stated that these taxes are “designed to harm, or discriminate against, American Technology.” He highlighted that more than a dozen countries currently impose such taxes, which tend to affect the largest and most established tech firms, predominantly American.
Trump emphasized the seriousness of the situation, declaring that he would impose “substantial” new tariffs on any country that fails to remove its digital taxes and related regulations. His administration wants to ban U.S. chip exports to those countries too. This possible measure follows decades of Trump’s similar attempts to strong arm U.S. trade partners to drop these types of digital taxes.
“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that 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 U.S.A.,” – Trump
Trump’s other trade weapons—tariffs and export restrictions—are just as troubling and harmful. Beyond that, he’s showing a willingness to threaten countries with punishment for how they treat American technology companies. He stated, “Show respect to America and our amazing Tech Companies or consider the consequences!” This declaration is consistent with his track record. In June, he stopped a trade deal with Canada in its tracks over the country’s proposed digital tax. After this strategic maneuver, the White House pronounced victory by saying Canada “caved” to pressure when it repealed its tax.
The problem has made international headlines, ranking among Trump’s criticisms of Europe’s leaders. On July 27, 2025, he discussed the cooperation with European Commission President Ursula von der Leyen in Turnberry, Scotland. Of all the substantive issues on the agenda during this meeting, the dangers of digital services taxes must have been at or near the top.
As these historic developments play out, the future of the global tech landscape remains in the balance. The consequences of Trump’s excessive tariffs and export restrictions might reconfigure trade relations between the U.S. and other countries for decades. Second, the administration says protecting American technology companies… This specific emphasis shines a spotlight onto a broader effort to make sure the U.S. remains leading in the global tech industry.