Key Points

In a social media post on Truth Social, Trump warned that "substantial" tariffs and export restrictions would be imposed on nations that don't "show respect" to US tech companies.

He claimed that digital taxes, services legislation, and market regulations are designed to harm American technology, while giving China's largest tech companies a free pass, as per Euro News.

"I will stand up to Countries that attack our incredible American Tech Companies. Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm or discriminate against American Technology. They also outrageously give a complete pass to China's largest Tech Companies. This must end, and end NOW! With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations on notice that unless these discriminatory actions are removed," Trump wrote on his social media platform, Truth Social.

"I will impose substantial additional Tariffs on that Country's Exports to the USA., and institute Export restrictions on our Highly Protected Technology and Chips. America, and American Technology Companies, are neither the "piggy bank" nor the "doormat" of the World any longer. Show respect to America and our amazing Tech Companies, or consider the consequences!," the post added.

Trump didn't target any countries by name, although his comments could be read as a criticism of the EU's Digital Markets Act (DMA) and the Digital Services Act (DSA).

The DMA seeks to ensure fair competition by preventing large digital platforms from monopolising the market. The EU has identified Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft as so-called "gatekeepers", meaning firms with an entrenched market position. The DSA, on the other hand, aims to prevent illegal and harmful activities online and the spread of disinformation.

The UK also has a digital services tax, along with several EU member states such as France, Italy and Spain.

Trump's stance threatens to unravel progress made with European partners on reducing trade friction.

Last week, the European Union and the United States made significant progress on a trade pact aimed at removing unjustified barriers to transatlantic business. The agreement, announced on July 27, would lower tariffs on specific goods and sectors, promoting bilateral trade.

However, the 27-member bloc expressed a reluctance to make any concessions on digital regulations.

"We have made it very clear to the US that changes to our digital regulations - the Digital Markets Act and the Digital Services Act - were not on the table," said the European Commission in a statement.

Trump's recent post is not the first time he has threatened tariffs on countries that have imposed a digital services tax.

- ANI