Is the trade war between the US and Europe reigniting? Trump once again "bombards" the digital tax: will retaliate with tariffs and export controls!

Trump once again "bombarded" the digital tax, threatening to retaliate with tariffs and export controls, a tough statement that may reignite trade tensions between the United States and the United Kingdom and the European Union.

On Monday evening local time, U.S. President Trump posted on the Truth Social platform: "As President of the United States, I will fight against countries that attack our outstanding American technology companies. Digital taxes, digital services legislation, and digital market regulations are all designed to harm or discriminate against American technology."

Trump also threatened to impose tariffs and export control measures on countries that "discriminate" against the U.S. in terms of technology company taxation, rules, or laws.

These remarks directly target the UK's digital services tax and the EU's Digital Services Act, among other policies. Although both the UK and the EU have reached the latest trade agreement with the U.S., Trump's threats may put pressure on the trade relations between the two sides again. According to CCTV News, it was previously reported that the U.S. and the EU had reached an agreement on the framework of a trade accord. Media reports indicated that the U.S. reiterated a 15% tariff cap on most EU goods in its statement, stating that tariffs on EU automobiles could be reduced in a few weeks.

U.S. officials have repeatedly criticized the UK's digital services tax policy, and during recent trade negotiations, the U.S. also questioned the EU's Digital Services Act, which mandates stricter platform regulation for large tech companies.

Pressure on UK-EU Digital Tax Policies

The UK currently implements a 2% digital services tax, applicable to companies with global revenues exceeding £500 million, taxing their revenues exceeding £25 million earned in the UK. This tax directly affects tech giants including Alphabet, Meta, and Amazon.

According to media reports, U.S. officials have repeatedly criticized the UK's digital services tax, even though it was retained after the UK-U.S. trade agreement was reached. UK officials also considered modifying the tech tax during negotiations with the U.S., but ultimately reached a trade agreement without changing the tax On the EU side, its landmark "Digital Services Act" requires large tech companies to more actively regulate the content on their platforms, and this bill has also faced criticism from the U.S. side in recent trade negotiations. Additionally, several EU member states, including France, Italy, and Spain, have implemented a digital services tax.

Canada Takes the Lead in Compromise

In the face of pressure from the U.S., some countries have begun to adjust their policies.

In June of this year, Canada canceled its digital services tax. Previously, Trump had described this tax as a "direct and blatant" attack, and Canada's move is seen as an effort to ease tensions in trade negotiations with its neighbor.

Canada's compromise sets a precedent for other countries facing pressure from the U.S. and demonstrates the determination and influence of the Trump administration in protecting the interests of American tech companies. As Trump readdresses the issue of digital taxes, more countries may face the pressure of choosing between maintaining their domestic tax policies and avoiding trade disputes