In a strong message, former US President Donald Trump warned nations about digital taxes. He stated America would retaliate with tariffs and export controls.
Digital Tax Tussle
The former US President issued a warning to countries with digital taxes, particularly in Europe. These taxes target revenue of digital service providers, including tech giants like Google, Meta, Apple, and Amazon. This move has significantly escalated trade tensions across the Atlantic, impacting global commerce.
Tariffs and Export Controls
Trump's response included a threat of tariffs and export controls. He stated countries with digital taxes would face additional tariffs on their exports to the US. He also warned of restrictions on semiconductors and other sensitive technology, underlining the seriousness of the situation.
No 'Piggy Bank' Role
The former US President emphasized that America wouldn't be treated as a 'piggy bank' or 'doormat.' He demanded respect for American tech companies. This strong language indicated a firm stand against practices perceived as detrimental to US tech interests.
Transatlantic Agreement?
This warning came a week after Washington and Brussels agreed to address 'unjustified trade barriers.' The EU also affirmed it wouldn't adopt network usage fees. This suggests a complex interplay of agreements and disagreements within international trade.
