Trump angrily criticized: If you dare to impose a digital tax, we will increase tariffs and also restrict semiconductor exports.

Since Trump returned to power, Digital Services Taxes, DSTs have once again become a focal point of controversy in global trade. Trump believes that this tax system is a "discriminatory measure" aimed at the U.S. technology industry, thus threatening to impose tariffs on countries that levy DSTs and even to restrict the export of high-tech products.

Trump still takes a tough stance, daring to retaliate with tax increases against US companies' DSTs.

Trump warned France during his first term that if it insisted on imposing DSTs on American tech companies, a 25% tariff would be added to French goods. Although this was later temporarily shelved, the attitude was already quite clear. After returning to the White House, Trump directly reactivated the 301 investigation into DSTs from various countries and informed the Organization for Economic Co-operation and Development (OECD) that the United States would no longer be bound by past international negotiation commitments.

On August 26, 2025, Trump made a statement on Truth Social, placing all countries that impose or plan to impose a digital services tax on a "watch list." He further threatened that if they do not cancel it, significant tariffs will be imposed, while also implementing restrictions on technology and semiconductor exports, pushing economic and geopolitical pressures to the breaking point.

( Note: Section 301 refers to the U.S. Trade Act Section 301, which authorizes the U.S. Trade Representative to investigate and determine whether foreign laws, policies, or practices are unreasonable or discriminatory and cause damage to U.S. industries. )

What are DSTs?

Digital Services Tax (DST) is a type of tax levied on the revenue generated by multinational digital enterprises providing digital services in specific countries and regions.

Because the traditional tax system taxes based on "physical presence," it is difficult to effectively tax digital technology companies ( Google, Apple, Facebook, Amazon ). Therefore, this tax type has been established to ensure that these companies can "pay taxes where they earn money."

The following are the latest digital service taxes of various countries in 2025 (DSTs) and the current status of related digital tax systems:

(Note: The "threshold" in the chart refers to the minimum revenue standard applicable for taxation, meaning that a company must meet a certain amount of "global revenue" or "local revenue" to be included in the scope of DSTs. )

The controversy over DSTs escalates, with semiconductors also included.

Trump's tariff sanctions have already put pressure on European countries. In 2020, Trump threatened to impose high tariffs on French perfumes, handbags, and other products. Although it was ultimately postponed, it has already undermined confidence in European industries. This time, due to DSTs, European consumer goods are likely to be severely affected again.

It is worth noting that Trump has linked "export restrictions" with DSTs this time, specifically naming semiconductors and high-tech products. For the global market reliant on American chips, this means bringing the tax disputes of DSTs directly to the level of the technology supply chain, which could have a greater impact than simple tariffs on goods.

The UK and France refuse to back down, stating that DSTs help improve the deficit.

Facing Trump's tough stance, Canada chose to back down, announcing the cancellation of DSTs on the eve of their implementation to avoid a breakdown in negotiations. However, major European countries remain firm, particularly France, which has even clearly stated that it will not withdraw DSTs, as this tax system is expected to generate nearly 775 million euros (, approximately 902 million dollars ), an important source to fill the budget deficit. The UK is also unwilling to compromise and continues to retain DSTs, while the United States has expressed significant "disappointment" over this.

Although the European Union has not launched a unified version of the digital tax, member states still insist on imposing DSTs, leading to a deadlock in US-EU negotiations. While the EU expressed willingness to "address digital trade barriers" during trade agreement negotiations with the United States, it also emphasized that it would not amend the Digital Services Act (DSA) and the Digital Markets Act (DMA), refusing to back down. The subsequent impact still needs to be closely monitored.

( Trump ends US-Canada negotiations! DST becomes the trigger point, US Treasury Secretary: new round of tariff measures will be announced soon )

This article Trump angrily criticized: Dare to impose a digital tax will increase tariffs, and also limit semiconductor exports. First appeared in Chain News ABMedia.