• Trump threatens substantial tariffs on countries with digital service taxes.
• The U.S. sees these taxes as discriminatory against American tech firms.
• Countries like Canada have previously dropped similar tax plans due to U.S. pressure.
• Trump argues these regulations favor Chinese tech companies while disadvantaging U.S. firms.
• His administration considers sanctions on EU officials involved with the Digital Services Act.

President Donald Trump has threatened to impose substantial additional tariffs on countries that enact digital taxes and related regulations targeting U.S. technology companies. Trump stated these measures are designed to harm American technology and give an unfair advantage to Chinese firms. He declared on his Truth Social platform, “This must end, and end NOW!” prompting warnings for all countries involved to repeal such legislation, according to The Jakarta Post and India Times.

Trump emphasized that unless countries withdraw these "discriminatory actions," he would impose further tariffs on their exports to the United States and restrict exports of high-tech goods and semiconductors. “America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” he insisted, highlighting a longstanding frustration with international tax frameworks, according to Channel News Asia, Le Monde, and Reuters.

Previously, Canada had planned to introduce a digital services tax aimed at major US tech companies but scrapped that plan amid U.S. pressure, which Trump framed as a diplomatic victory. This aligns with his previous actions, where past threats of tariffs on countries with similar digital tax frameworks have resulted in retreat from such proposals, according to India Times and Newsweek.

The implications of Trump's threats could rekindle trade tensions, particularly with the European Union, which has put in place regulations like the Digital Services Act that Trump argues are specifically aimed at undermining U.S. tech firms. Observers indicate that ongoing disputes over digital taxation will likely dominate future negotiations, according to The Hill and Channel News Asia.