Recently, trade disputes between the US and various countries regarding digital taxes have escalated. US President Donald Trump has issued threats against countries imposing such taxes, while the European Union maintains its stance on the regulation of technology.
Threats from the US President
US President Donald Trump has announced intentions to impose tariffs and export restrictions on countries that introduce digital services taxes affecting American companies. In a post on Truth Social, he emphasized that such actions are against giants like Google, Meta, Amazon, and Apple. Trump pointed specifically to the UK's digital services tax, which is a 2% levy on revenues, generating approximately £800 million annually.
EU's Response
European Commission spokesperson Paula Pinho responded to the criticism by stating that it is the sovereign right of the EU and its member states to regulate their economic activities in accordance with democratic values. She also emphasized that the EU does not plan to alter its digital regulations, which aim to limit the power of large platforms.
Responses from Other Countries
Canada previously backtracked on its digital services tax, which Trump termed a direct attack, to ease trade discussions with the US. Meanwhile, political figures like Liberal Democrat leader Ed Davey urge the UK government not to cave into Trump's pressure and to uphold its tax measures against technology. He stressed the importance of protecting user interests and standing firm with allies.
Thus, the dispute over digital taxes continues to intensify, with high expectations for responses from countries. It is clear that each side is trying to protect its interests amid global economic uncertainties.
