Trump’s latest threat signals a broader strategy to weaponize tariffs and tech exports 
Trump’s latest threat signals a broader strategy to weaponize tariffs and tech exports President Donald Trump has threatened sweeping tariffs and chip export bans on countries that continue to impose digital services taxes, calling them discriminatory toward American tech giants.
In a statement posted to Truth Social, Trump warned, “I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I… will impose substantial additional Tariffs on that Country’s Exports to the U.S.A.”
He also vowed to restrict exports of U.S.-made semiconductors and technology to countries enforcing such measures, declaring, “Show respect to America and our amazing Tech Companies or, consider the consequences!”
Digital services taxes—currently imposed by dozens of countries—typically target the revenues of major tech firms like Meta, Alphabet, and Amazon. Trump claims the taxes are designed to harm U.S. companies and infringe on American economic interests.
The warning follows escalating tensions in global trade negotiations. In June, Trump announced a halt to all trade talks with Canada over its planned DST. Ottawa backed off the tax at the last moment, prompting a celebratory statement from the White House that Canada had “caved.”
“These taxes are built to arbitrarily target innovative American companies,” said the Senate Finance Committee in a bipartisan letter to the U.S. Trade Representative in 2023, criticizing Canada’s now-abandoned plan.
However, foreign governments argue that Big Tech profits off their citizens while contributing little in taxes. They say DSTs are a necessary measure to ensure fair taxation in the digital economy.
Trump’s latest threat signals a broader strategy to weaponize tariffs and tech exports in defense of U.S. corporate interests, with trade policy once again emerging as a central plank of his administration.