President Donald Trump has threatened new tariffs and export bans on countries that place digital taxes on American tech companies. His warning reflects growing tensions over how governments around the world are regulating big firms like Apple, Google, and Meta.
Several European countries and Canada have looked at digital service taxes, arguing that global tech giants earn huge profits in their markets without paying a fair share in taxes. The U.S. sees these measures as unfair because they mainly affect American companies, while leaving large Chinese firms untouched.
The European Union’s new Digital Markets Act is one of the biggest points of friction. It introduces tough rules to prevent major platforms from abusing their dominance. Trump’s threats raise the risk of fresh trade disputes with Europe, even as both sides had recently promised to work together on digital trade rules.
Trump’s position puts allies in a difficult spot. Countries that go ahead with digital taxes could face U.S. retaliation, leading to economic fallout on both sides. Canada already backed down from its own plan under U.S. pressure, showing how vulnerable smaller economies are in these disputes. A global solution through the OECD remains the best option to avoid conflict, but Trump’s approach suggests he is more focused on using trade threats than patient negotiation.
Source: Viewers Corner News