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Trump Threatens 'Substantial' Tariffs and Chip Export Curbs Over Digital Taxes

Brussels says regulating tech on EU territory is a sovereign right.

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European Union flags flap in the wind outside EU headquarters in Brussels, Thursday, Aug. 21, 2025. (AP Photo/Virginia Mayo)
U.S. President Donald Trump looks on at the Joint Base Elmendorf-Richardson in Anchorage, Alaska, U.S., August 15, 2025. REUTERS/Kevin Lamarque/ File Photo
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Overview

  • In a Truth Social post, the president put countries with digital taxes or digital rules on notice, warning of additional tariffs and export controls on advanced technology and chips unless such measures are withdrawn.
  • U.S. trade officials have revived investigations into foreign digital services taxes this year, and the new ultimatum intensifies leverage built through wider tariff policies.
  • Reuters reported that officials are considering targeted steps such as visa restrictions on EU or member‑state officials enforcing the Digital Services Act, though no decisions have been announced.
  • The European Commission pushed back, asserting regulatory sovereignty as the EU’s Digital Services Act and Digital Markets Act continue to apply, despite a recent U.S.-EU pledge to address unjustified digital trade barriers.
  • The warning follows a successful pressure campaign in June when Canada rescinded a planned digital services tax, while several European countries and the UK continue to levy such taxes on large U.S. tech firms.