Trump goes on attack over digital services taxes, threatens tariffs

By Brett Rowland
The Center Square

President Donald Trump broadly attacked other nations’ plans for a digital services tax, which he said were designed to harm U.S. companies while giving others a pass.

Trump earlier this year killed Canada’s plans to implement a digital services tax, but the president has made clear he doesn’t want to see similar taxes pop up elsewhere, threatening to respond with U.S. tariffs if countries impose the tax unilaterally.

Trump said the taxes were a direct threat to U.S. tech firms.

“As the President of the United States, I will stand up to Countries that attack our incredible American Tech Companies. 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!” the president wrote on Truth Social, his social media platform.

Some 18 nations have already implemented digital services taxes, according to a 2024 report from the Tax Foundation.

Trump said he’s not having it.

“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., and institute Export restrictions on our Highly Protected Technology and Chips.

The president called for respect for U.S. tech firms.

“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump wrote. “Show respect to America and our amazing Tech Companies or, consider the consequences!”

In late June, Canada caved to Trump’s demands by pulling its digital services tax hours before it was to go into effect. Canada’s proposed digital services tax required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.