Why Trump is threatening tariffs over foreign digital taxes

President Donald Trump has escalated his trade fight to the digital economy, warning that countries targeting U.S. technology companies with digital services taxes or restrictive regulations could face new tariffs and export bans.

In a post on Truth Social, Trump said such measures “discriminate against American technology” and unfairly give a pass to China’s tech giants. His comments directly challenge the United Kingdom’s 2% digital services tax, which generates nearly £800 million annually from global companies, and EU laws like the Digital Services Act that curb the power of big tech.

Trump has pledged to defend U.S. companies such as Google, Meta, Apple, and Amazon, calling them “the best in the world,” and vowing consequences for countries that impose what he sees as discriminatory barriers.

The threat adds pressure on U.S. allies, including France, Italy, and Spain, which have similar taxes in place. It also comes just weeks after the U.S. and EU issued a joint statement on tackling “unjustified trade barriers,” though the EU said it will not alter its digital rules.