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Trump Threatens Tariffs and Tech Export Curbs Over Foreign Digital Taxes

The threat escalates a U.S.–EU clash over digital rules, with Brussels insisting its laws protect users’ rights and free expression.

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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

  • President Trump warned he will levy “substantial additional tariffs” and impose export restrictions on chips and protected technology against countries that keep digital taxes or related regulations targeting U.S. tech firms.
  • His post argued that digital taxes, the EU’s Digital Services Act and Digital Markets Act discriminate against American companies and give Chinese tech firms a pass, without naming specific countries.
  • Reuters reported that U.S. officials have considered visa restrictions on EU or member state officials enforcing the DSA; the State Department declined to confirm potential punitive steps.
  • An EU Commission spokesperson rejected U.S. claims of censorship, saying the DSA safeguards freedom of expression and asserting the EU’s sovereign right to regulate economic activity.
  • The move follows revived U.S. trade probes into DSTs and recent pressure that saw Canada rescind a planned digital services tax, as many European countries maintain such levies on large platforms.