Trump Threatens Tariffs and Chip Export Bans Against Countries Imposing Digital Taxes
Donald Trump warned Tuesday that countries enforcing digital services taxes (DSTs) on U.S. tech firms will face steep tariffs and chip export bans. Posting on Truth Social, he said nations must “remove discriminatory actions” or risk consequences, framing the taxes as direct attacks on companies like Meta, Alphabet, and Amazon. The warning follows Trump’s June standoff with Canada, which shelved its DST after U.S. threats. He also broadened trade pressure, threatening 200% tariffs on China’s rare-earth magnet exports and revealing the U.S. withheld Boeing airplane parts from China as leverage in supply-chain negotiations. China, which controls 90% of global rare-earth supply, recently imposed export restrictions but later boosted shipments to the U.S. amid soaring demand. Trump’s stance, echoed by bipartisan lawmakers, positions DSTs and critical tech materials as part of a wider U.S. strategy to defend its tech sector and national security interests.