American technology companies are no longer ‘piggy bank’ or the ‘doormat’ of the world, he says
US president Donald Trump has issued a warning against countries imposing taxes and regulations on American technology giants such as Google, Apple, Meta and Amazon, threatening tariffs and export restrictions if such “discriminatory” measures continue.
In a statement posted on his social media platform, Truth Social, Trump condemned digital taxes, legislation and regulatory rules he described as mechanisms designed to “harm, or discriminate against, American technology.”
These policies “outrageously give a complete pass to China’s largest tech companies,” Trump said, demanding that “this must end and end NOW!”
“America and American technology companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the world any longer. Show respect to America and our amazing tech companies or consider the consequences,” Trump wrote.
He vowed to “stand up to countries that attack our incredible American tech companies” by imposing “substantial additional tariffs on that country’s exports to the USA”.
Earlier this year, Trump signed executive order, Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties, which threatened retaliatory tariffs.
Canada abandoned its digital services tax in June after Trump denounced it as a “direct and blatant” attack on US firms, seeking to ease diplomatic tensions.
Although Trump did not name specific countries in his latest post, his threat puts direct pressure on the UK and the EU, both of which have recently concluded trade agreements with the US.
The UK’s Digital Services Tax (DST) is charged at 2% on revenues made by large global tech companies that provide a social media service, search engine or online marketplace to UK-based users. The EU has also enacted significant regulations through the Digital Services Act (DSA) aimed at moderating big tech’s influence.
Trump’s warning comes a week after joint declarations between the US and EU pledging to “address unjustified trade barriers” and agreeing not to impose customs duties on electronic transmissions.
Despite this, the EU clarified that it would not revise its digital market regulations, including the Digital Markets Act and the Digital Services Act, leaving these digital taxes and rules intact as potential leverage in future trade negotiations.
The UK’s DST, introduced in 2020, survived the trade negotiations with the Trump administration in 2020.
In April this year, it was reported that Labour leader Keir Starmer had offered US tech companies a reduction in the headline DST rate while maintaining the levy on non-US companies, in an apparent attempt to appease Trump’s concerns.
The confrontation has drawn criticism within the UK. Ed Davey, leader of the Liberal Democrats, condemned the prospect of diluting the DST under Trump’s pressure.
“The prime minister must rule out giving in to Donald Trump’s bullying by watering down Britain’s digital services tax,” Davey stated.
Meanwhile, the Organisation for Economic Co-operation and Development (OECD), comprising 38 mostly wealthy nations, continues negotiations on a global agreement designed to replace national digital taxes with a unified system for allocating multinational companies’ profits for tax purposes.
However, the US could resist the deal if it risks losing its taxation rights.