Donald Trump, speaking from the White House, warned that countries enforcing digital services taxes will face heavy tariffs and chip export bans from the United States.
Warning on Tariffs
Trump posted the warning on Truth Social, stating: "I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that 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."
Issues with Magnets and Parts
In addition to the digital tax issue, Trump has threatened tariffs on China’s rare-earth magnet exports. He remarked, "They have to give us magnets, if they don’t give us magnets, then we have to charge them 200% tariffs or something." He linked the issue to a critical supply chain that the U.S. depends on for national security and tech manufacturing.
Bipartisan Response in the U.S.
The disagreement over digital taxes isn't limited to Trump's office. In 2023, Senate Finance Committee Chairman expressed concerns that Canada's digital services tax could lead to "arbitrary discrimination" against American companies. Countries implementing digital taxes argue they are simply seeking fairness for digital services used within their territories.
Trump maintains a tough stance on protecting American companies from digital taxes and export restrictions. His warnings underscore the escalating tensions between the U.S. and other nations regarding international trade and tax policy.
