Donald Trump has warned of potential tariffs and export limits on nations that implement taxes, laws, or regulations targeting major tech firms like Google, Meta, Amazon, and Apple.
“All digital taxes, laws, rules, or regulations aim to harm or discriminate against American technology,” Trump stated in a post on his social media platform, Truth Social.
He pointed out that such measures include a 2% revenue collection, exemplified by the UK’s digital services tax, which generates approximately £800 million annually from leading tech companies worldwide.
“As the President of the United States, I stand against any country that attacks our exceptional American tech firms,” Trump remarked. “If these discriminatory lawsuits are not withdrawn, I will impose a significant additional fee on that country’s exports to the U.S., restricting access to protected technologies and chips.”
Trump’s ultimatum adds pressure on both the UK and the EU, especially regarding regulations aimed at limiting the dominance of major tech companies through the Digital Services Act.
Numerous EU nations, including France, Italy, and Spain, have already instituted digital services taxes.
U.S. officials have criticized the UK’s Digital Services Tax (DST), which has been active since 2020, though it was kept in place after a May agreement with the Trump administration.
Trump has expressed concerns over the detrimental effects DSTs worldwide have on American firms.
In February, he signed an executive order titled “Interesting Foreign Tax and Unfair Fines and Penalties” directed at U.S. businesses and innovators.
It surfaced in April that Keir Starmer proposed a reduced headline rate for U.S. tech giants regarding DST, while simultaneously taxing companies in other nations.
“American and U.S. tech companies are not the world’s ‘piggy banks’ or ‘doormats’,” Trump stated on Monday. “Respect America and our outstanding tech firms, or face the consequences.”
After the newsletter promotion
This warning from the president follows a recent joint statement from the U.S. and the EU committed to addressing “unfair trade barriers.”
However, the EU has not pledged to amend digital regulations individually.
In June, Canada repealed its Digital Services Tax, described as a “direct and blatant” move to facilitate smoother negotiations with its neighbors.
Quick Guide
Please Contact Us About This Story
show
The best public interest journalism relies on first-hand accounts from knowledgeable individuals.
If you have anything to share about this subject, please confidentially contact us using the following methods:
Secure Messaging in the Guardian App
The Guardian app includes a feature for sending story tips. Messages are end-to-end encrypted and concealed within standard app activities, ensuring observers cannot detect communication with us.
If you haven’t yet downloaded the Guardian app, do so here (iOS/Android) and select ‘Secure Messaging’ from the menu.
SecureDrop, Instant Messenger, Email, Phone, and Post
If you’re able to safely navigate the TOR network without monitoring, you can communicate securely with us via the SecureDrop platform.
Lastly, our guide at theguardian.com/tips details multiple secure contact options, along with their respective pros and cons.
Source: www.theguardian.com
