Donald Trump has issued a stark warning to America’s closest trading partners: scrap digital taxes on U.S. tech giants—or face tariffs and export restrictions.
In a fiery post on Truth Social, the president blasted the UK and EU for targeting companies like Google, Amazon, Meta, and Apple with digital services taxes and regulations. “Digital taxes, legislation, rules or regulations are all designed to harm, or discriminate against, American technology,” Trump wrote. He singled out the UK’s 2% digital services tax, which raises nearly £800 million annually, accusing it of unfairly sparing Chinese firms while penalizing U.S. innovators.
Trump pledged to retaliate if these measures remain in place: “Unless these discriminatory actions are removed, I… will impose substantial additional tariffs on that country’s exports to the USA, and institute export restrictions on our highly protected technology and chips.”
The threat comes at a delicate moment for transatlantic trade. The EU has rolled out sweeping regulations through its Digital Services Act, while countries including France, Italy, and Spain continue to tax foreign tech revenues. The UK, too, has resisted calls to drop its levy despite a 2020 trade agreement with Washington.
Critics warn Trump’s approach risks sparking another trade war, this time with allies rather than rivals. Liberal Democrat leader Ed Davey urged the UK government not to bow to Trump’s “bullying,” arguing that tech companies should contribute fairly to local economies rather than receive breaks.
Still, some nations have already adjusted under U.S. pressure. Canada scrapped its planned digital services tax earlier this year after Trump branded it a “direct and blatant attack.” Whether Europe follows suit remains to be seen.
For now, Trump’s message is clear: America’s tech industry, he insists, is “neither the piggy bank nor the doormat of the world any longer.”
