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Trump Threatens Tariffs and Chip Export Curbs Over Digital Taxes

The warning elevates a long-running dispute over digital taxes into a broader trade confrontation.

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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, President Donald Trump said he would impose “substantial additional tariffs” and restrict exports of U.S. technology and chips on countries that keep digital taxes or related regulations he calls discriminatory.
  • Reuters reported the administration is considering visa restrictions on EU or member-state officials who enforce the bloc’s Digital Services Act, though senior State Department officials have not made a final decision.
  • The move builds on earlier steps, including revived USTR investigations into digital services taxes and pressure that preceded Canada rescinding a planned DST in June.
  • European Commission officials reject U.S. claims of censorship, stating the DSA safeguards freedom of expression, while many European countries and the UK maintain digital levies on large platforms.
  • The threats have not yet been implemented but raise the risk of trade tensions with allies and potential supply-chain effects if tech and chip export limits are carried out.