WASHINGTON, D.C. — President Donald Trump escalated his trade offensive on Monday, August 25, 2025, by threatening to impose substantial tariffs and export restrictions on countries that levy digital services taxes (DSTs) on U.S. technology companies. The warning, detailed by The Guardian, targets nations like the United Kingdom, France, Italy, and Spain, whose tax policies Trump claims unfairly discriminate against American tech giants such as Google, Meta, Amazon, and Apple while giving a “complete pass” to Chinese firms.
In a fiery post on Truth Social, Trump declared, “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 move follows a February 2025 executive order directing the U.S. Trade Representative to revive investigations into DSTs, initially launched during Trump’s first term under Section 301 of the Trade Act of 1974.
The UK’s 2% DST, implemented in 2020 and generating roughly £800 million annually, has been a particular point of contention. France, Italy, and Spain also impose similar taxes, which collectively generate over $2 billion yearly, according to a White House fact sheet. These levies target revenues from digital services like online advertising and marketplaces, often hitting U.S. firms due to their high revenue thresholds. “America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump asserted, demanding respect for U.S. tech.
Key points of the dispute include:
- UK’s DST raises £800 million yearly, targeting U.S. tech giants.
- EU’s Digital Services Act and Digital Markets Act face U.S. scrutiny for alleged bias.
- Canada scrapped its DST in June 2025 after Trump’s trade threats.
Critics, including European officials, argue DSTs address tax loopholes for global tech firms operating locally. The EU’s Thomas Regnier warned on February 24, 2025, that the bloc would “respond swiftly” to defend its regulatory autonomy. As trade talks falter—Trump withdrew the U.S. from OECD global tax negotiations in January 2025 analysts fear escalating tariffs could spark a broader trade war, impacting consumers and global markets.
