Overview
- Trump posted an ultimatum saying countries that keep digital taxes or tech regulations targeting U.S. firms will face “substantial additional tariffs” and restrictions on exports of American chips and advanced technology.
- Two sources told Reuters senior U.S. officials are weighing visa restrictions on EU or member-state officials who implement the Digital Services Act, though the State Department declined to confirm any planned action.
- The European Commission rejects U.S. censorship claims, saying the DSA aims to tackle illegal content while safeguarding free expression and that it is not designed to single out American companies.
- Digital services taxes are in force in multiple countries and have long strained trade ties; Trump revived tariff probes in February and earlier pressure helped prompt Canada to roll back its planned DST.
- No new tariffs, export controls, or sanctions tied to this threat have been formally imposed, but the rhetoric raises the risk of a transatlantic trade clash with economic and diplomatic repercussions.