Key points
- Trump’s threats appear targeted at European countries
- EU has introduced laws to regulate the online world
- Digital Markets Act and the Digital Services Act are implemented in EU
ISLAMABAD: US President Donald Trump has said he will increase tariffs and impose export restrictions on countries that tax or regulate US tech firms.
The comments are being seen as his most direct threat to retaliate against nations that he views as discriminating against companies such as Google and Meta Platforms, according to the Wall Street Journal.
“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., and institute Export restrictions on our Highly Protected Technology and Chips,” Trump wrote in a post on his Truth Social platform.
Trump Threatens Tariffs On Countries With Digital Taxes; Threatens To Place Export Restrictions On Chips pic.twitter.com/2tkcHf9VCj
— LiveSquawk (@LiveSquawk) August 26, 2025
His comments appear targeted at European countries and others who have created laws regulating the online world, according to AFP.
The European Union for example has rules like the Digital Markets Act (DMA) and the Digital Services Act (DSA) covering competition and content moderation.
The UK also has a tax on digital companies, although Trump did not name specific countries or regions.
“Discriminatory actions”
But he said that unless what Washington deemed as “discriminatory actions” were removed, he would “impose substantial additional tariffs” on countries’ products and institute export restrictions on US tech and chips.
“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump wrote.
In June, Trump called off trade talks with Canada in retaliation against Ottawa’s planned digital services tax, which would have applied to US multinational companies such as Alphabet, Amazon and Meta that provide services to Canadians.
Shortly after, Canada said it would rescind the taxes impacting US tech firms.
Tariffs
Since returning to the presidency in January, Trump has imposed tariffs on allies and competitors alike, with varying rates for different countries’ products.
But sectors he has singled out for separate action — such as steel, aluminium and autos — are spared from these countrywide levels.
Instead, they have been hit with sector-specific duties.
Trump has wielded tariffs as a means to pursue various goals. A doubling of US tariffs on Indian products is set to take effect this week over its purchase of Russian oil — a key revenue source in Moscow’s war in Ukraine.
