Trump warns countries with digital services tax of substantial tariffs and export curbs
Measures could restrict US tech and chip sales to noncompliant nations
Administration considers sanctions on EU officials enforcing the Digital Services Act
Potential trade fallout may complicate negotiations with China and EU partners
US President Donald Trump has put nations that impose digital services taxes “on notice,” threatening to levy “substantial additional tariffs” on their exports to the US and to restrict sales of sensitive US technology and chips unless the measures are repealed.
In a social-media post, Trump called the taxes discriminatory against American technology firms and warned they could prompt both higher import duties and limits on US exports of advanced technology.
He wrote, “I will impose substantial additional tariffs on that country’s exports to the US and institute export restrictions on our highly protected technology and chips.” The warning follows a renewed US focus this year on potential trade penalties tied to digital levies.
Possible Sanctions on EU Officials
Separately, US officials have considered targeting European Union or member-state officials involved in enforcing the EU’s Digital Services Act, according to sources cited by Reuters. That option, still under internal review, underscores how far the administration is willing to go to pressure trading partners over new rules and taxes aimed at large tech platforms.
The warning arrives as high-level trade diplomacy resumes: China’s senior trade envoy is due in Washington this week for talks that will cover technology export controls and agricultural purchases, Reuters and other outlets report.
The spat over digital taxes has already affected US negotiations with some countries, for example, Ottawa recently dropped a proposed digital services tax, clearing the way to restart US–Canada trade talks.
Why Digital Taxes are a Flashpoint?
Digital services taxes are levied by a number of countries, mainly in Europe, on the sales revenue of major online platforms, including firms headquartered in the United States.
Washington has long argued those rules unfairly single out American technology companies while benefiting non-US competitors, a complaint that has repeatedly driven threats of retaliatory measures.
If carried out, the measures Trump outlined, higher tariffs and curbs on chip and tech exports, could raise tensions with key trading partners and complicate negotiations on other economic issues. US trade agencies have already been instructed this year to revisit probes that could justify tariffs on imports from countries that impose digital levies, and the latest public warnings signal that administration pressure may intensify.
Markets, foreign ministries and tech companies will be watching for formal policy moves: whether the White House advances investigations that could trigger tariffs, whether export-control measures are drafted and whether Brussels or affected capitals respond by reopening tax legislation. Any concrete steps would shape transatlantic relations and the global rules governing digital commerce in the months ahead.
