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Home > Tech and Auto > Donald Trump Threatens Tariffs Over Foreign Digital Rules Targeting US Tech Giants – What We Know

Donald Trump Threatens Tariffs Over Foreign Digital Rules Targeting US Tech Giants – What We Know

Donald Trump has threatened to slap tariffs and impose export restrictions on countries that enforce digital rules he claims discriminate against American tech giants. His remarks take aim at the EU and China, escalating tensions over digital regulation and global tech policy.

Published By: Kriti Dhingra
Published: August 26, 2025 23:28:01 IST

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US President Donald Trump has issued a stark warning to countries enforcing digital rules or taxes that he believes unfairly target American technology companies like Google, Apple and Meta.

In a Truth Social post late Monday, Trump said he would “stand up to Countries that attack our incredible American Tech Companies” and added, “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology.”

The EU in the Crosshairs

While Trump didn’t name names, his comments were widely seen as directed at the European Union. The 27-member bloc has ramped up regulation of tech giants through its Digital Services Act, which aims to police online content, and the Digital Markets Act, designed to curb monopolistic practices in tech.

Individual EU nations like France, Italy and Spain — as well as the UK — have also implemented digital services taxes targetting large tech platforms, according to The Associated Press. These taxes, the report said, often hit US companies hardest.

China Called Out Too

Trump also took an aim at China, accusing Beijing of getting “a complete pass” from such rules. “This must end,” he said. If foreign governments don’t reverse these actions, Trump warned, “I will impose substantial additional Tariffs” and “institute Export restrictions on our Highly Protected Technology and Chips.”

EU Pushes Back on Sovereignty

European Commission spokesperson Paulo Pinho defended the bloc’s right to regulate digital activity. “It is the sovereign rights of the EU and its member states to regulate economic activities on our territory,” AP quoted Pinho as saying.

Rising Tech Trade Tensions

Trump’s remarks come just a week after a joint US-EU statement promising to tackle “unjustified digital trade barriers.” 

Earlier in June, Trump reportedly coerced Canadian Prime Minister Mark Carney into dropping a digital services tax by threatening to suspend trade talks.

ALSO READ: Why US Federal Reserve Has Historically Been Independent of the White House

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