Trump Threatens New Tariffs and Export Restrictions Amid Digital Tax Retaliation

US President Donald Trump threatens new tariffs and export restrictions on high-tech goods as retaliation for digital taxes imposed by other countries. He argues that these taxes discriminate against US technology giants like Amazon and Google. Trump vows to impose additional tariffs and export restrictions if the discriminatory measures are not withdrawn. The EU has agreed to no tariffs on electronic transmissions, but has left open the possibility of using this issue as leverage in future trade talks.

US President Donald Trump has escalated his trade brinkmanship by threatening to impose new tariffs and export restrictions on advanced technology and semiconductors. The move comes in retaliation for digital services taxes levied by other countries, which Trump argues unfairly target US technology giants such as Amazon and Google.

In a social media post, Trump stated, "Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology. They also, outrageously, give a complete pass to China’s largest Tech Companies. This must end, and end NOW!" He warned, "Unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips" [1].

This latest threat follows a week after the US and the European Union agreed in a joint statement to address unjustified trade barriers and pledged not to impose customs duties on electronic transmissions [2]. However, the EU has reiterated that it has not committed to alter its digital regulations, potentially leaving the issue open for future trade negotiations.

Trump has long argued that digital services taxes discriminate against US tech giants. His administration has increasingly used export restrictions on technologies deemed critical for national or economic security [3]. The warning from the president comes amidst ongoing trade disputes with China, where he has previously threatened tariffs over the country's control over rare earth elements and magnets [1].

The Organization for Economic Cooperation and Development (OECD) is working on an international agreement to abolish digital taxes in favor of a global pact on taxing multinationals [4]. However, this effort could face opposition from the US, which could lose taxation rights under the proposed agreement.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-26/trump-threatens-export-curbs-tariffs-in-digital-tax-retaliation
[2] https://www.business-standard.com/world-news/trump-threatens-tariffs-tech-export-curbs-over-digital-tax-reprisal-125082600140_1.html
[3] https://financialpost.com/pmn/business-pmn/trump-vows-export-curbs-tariffs-in-digital-tax-reprisal
[4] https://www.ainvest.com/news/trump-threatens-tariffs-export-restrictions-digital-tax-retaliation-2508/