Donald Trump is again threatening tariffs. In a post on Truth Social, Donald Trump announced that he would impose new, “substantial” tariffs and restrict US chip exports on any country that does not drop its digital services taxes (DSTs) and related regulations. Writing on his social media platform, Truth Social, Trump declared that these taxes, implemented by dozens of nations worldwide, are “designed to harm, or discriminate against, American Technology.” He put all such countries “on notice,” stating that as president, he would impose “substantial additional Tariffs on that Country’s Exports to the U.S.A.” if these measures are not rescinded.In a further move, he threatened to “institute Export restrictions on our Highly Protected Technology and Chips,” adding, “Show respect to America and our amazing Tech Companies or, consider the consequences!”“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump wrote.

Canada scrapped Digital Tax in June under US pressure

Trump has long been a vocal opponent of these taxes, which are typically structured to apply to the world’s largest and most profitable tech companies, including American giants like Meta, Alphabet, and Amazon. He has used them as a point of leverage in past trade negotiations. Earlier this year, for example, Trump briefly threatened to halt all trade talks with Canada over its proposed DST. The White House later hailed Canada’s decision to scrap the tax as a victory, claiming Ottawa had “caved” to pressure.The digital taxes have drawn some bipartisan criticism in the U.S. In 2023, the chairman and ranking member of the Senate Finance Committee jointly warned the U.S. trade representative that Canada’s tax would subject “innovative American companies to arbitrary discrimination.”However, countries that have enacted these taxes argue that massive tech companies operate within their borders and generate significant profits from their citizens while paying little to no taxes to the host governments.