Donald Trump, the President of the United States, has warned that he will impose “retaliatory tariffs” on countries such as Canada and the European Union (EU), which impose digital taxes on American big tech companies. South Korea is also not exempt from Trump’s warnings, as it implements regulations targeting big tech, such as prohibiting the export of mapping data.
On the 25th (local time), President Trump stated on his social networking service (SNS), Truth Social, “The United States and American tech companies are no longer the world’s ‘piggy bank’ or ‘doormats’. Digital taxes, digital services laws, and digital market regulations are all designed to harm or discriminate against American technology.”
President Trump warned, “If any country implements digital taxes, laws, rules, or regulations and these discriminatory measures are not abolished, as President of the United States, I will impose significant additional tariffs on those countries’ exports to the U.S. and enforce export restrictions on our highly protected technology and chips.”
He further added, “Outrageously, China’s largest tech companies are granted completely exceptional privileges,” urging, “Show respect for America and our incredible tech companies. Otherwise, there will be corresponding consequences.”
Trump’s remarks are interpreted as targeting various regulations on big tech companies, such as digital taxes, being pursued or enforced by major countries.
The EU is currently enforcing the Digital Markets Act (DMA) and Digital Services Act (DSA) to prevent monopolistic behavior and manage content by large tech companies (big tech), though it does not impose digital taxes. Violating companies face significant fines.
The Trump administration has previously demanded multiple revisions to these DMA and DSA, claiming they are effectively tariffs. Although the U.S. and EU reached an agreement on tariff rates last month, conflicts over digital taxes remain.
Canada is also pursuing similar digital regulation to the EU.
South Korea is applying regulations such as bans on the export of geographical information and imposing network usage fees on foreign tech companies. The American business community has opposed South Korea’s so-called ‘Platform Act’, arguing that efforts by the South Korean government and National Assembly to regulate monopolistic practices by dominant online platform companies will burden only American firms.