Trump Threatens Tariffs For Nations With Digital Taxes On US Tech

Authored by Aldgra Fredly via The Epoch Times,

President Donald Trump on Aug. 25 threatened to restrict the export of U.S. advanced technologies like chips and impose additional tariffs on countries that refuse to eliminate digital regulations discriminating against U.S. tech companies.

In a Truth Social post, Trump opposed other nation’s digital taxes and regulations imposed on American companies that he said were intended “to harm, or discriminate against, American Technology.”

“They also, outrageously, give a complete pass to China’s largest Tech Companies. This must end, and end NOW,” Trump said of the lopsided treatment of the United States.

Trump warned that his administration would impose “substantial additional tariffs” on imports from those countries and restrict U.S. protected technology and chip exports, unless they withdraw their “discriminatory” digital taxes and regulations.

“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.”

The president did not specify what the tariff rates might be.

Many countries, particularly in Europe, have levied taxes on the sales revenue of digital service providers, including Alphabet’s Google, Meta’s Facebook, Apple, and Amazon. The issue has been a longstanding trade irritant for multiple U.S. administrations.

The United States and the European Union issued a joint statement on Aug. 21 outlining a framework for a “reciprocal, fair and balanced trade” agreement as part of efforts to resolve their trade imbalances.

In the statement, both sides pledged to address “unjustified digital trade barriers” and agreed not to levy customs duties on electronic transmissions. The EU also agreed not to adopt network usage fees.

Washington and the 27-member bloc also pledged to “continue to support the multilateral moratorium on customs duties on electronic transmissions at the World Trade Organization and seek the adoption of a permanent multilateral commitment,” according to the statement.

Trump in June vowed to terminate trade negotiations with Canada due to the nation’s Digital Services Tax (DST) affecting U.S. tech companies such as Amazon, Google, and Netflix. The Canadian government later responded by saying it would rescind its DST legislation.

The U.S. Trade Representative’s office stated in its latest report that most of Canada’s DSTs “have been designed in ways that discriminate against U.S. companies, as they single out U.S. firms for taxation while effectively excluding national firms engaged in similar lines of business.”

Canada’s DST also imposes “significant retroactive tax liabilities” with immediate effects on U.S. companies, according to the report published in March.

“Through bilateral and multilateral engagement, the United States continued to raise serious concerns regarding Canada’s DST and to encourage Canada to withdraw or repeal the DST,” the report stated.

Earlier this year, Trump issued a memo directing his administration to look at which countries are imposing taxes that “may discriminate against” U.S. companies. Among the fines and fees that Trump’s memorandum looked to address were digital taxes.

A fact sheet provided by the White House states that foreign governments have used these digital taxes against U.S. businesses when they shouldn’t otherwise be subject to foreign jurisdiction.