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Trump Threatens Tariffs and Tech Export Curbs Over Foreign Digital Taxes

Brussels replied that regulating its market is a sovereign EU decision.

Overview

  • In a Truth Social post, the president warned he would levy “substantial additional” tariffs on countries with digital taxes or digital market rules he deems discriminatory, and restrict exports of U.S. chips and other technology.
  • Reuters reported that officials are considering targeted measures such as visa restrictions on European Union or member-state officials involved in enforcing the Digital Services Act.
  • The European Commission rejected the threat, saying the EU and its members have the sovereign right to set and enforce their digital regulations.
  • The move extends a broader U.S. campaign revived in February to counter digital levies, after Canada canceled a planned digital services tax when Washington suspended trade talks.
  • Digital services taxes in places including the U.K., France, Italy and Spain chiefly apply to large platforms such as Alphabet, Meta, Apple and Amazon, and no new U.S. tariffs or sanctions tied to this latest warning have been announced.