Trump Administration Threatens Tariff Retaliation Against EU Tech Regulations
US President issues memorandum addressing European digital taxes and major tech regulations.
On Friday, US President Donald Trump signed a memorandum to protect American technology companies from what he termed 'overseas extortion,' signaling a firm stance against European Union (EU) tech regulations such as the Digital Markets Act (DMA) and the Digital Services Act (DSA).
The memorandum outlines the potential for tariffs on digital services taxes (DSTs) and other financial burdens that foreign governments impose on US companies operating abroad.
The White House has expressed concerns that these taxes enable countries to collect revenue from American firms solely for conducting business within their jurisdictions.
The memorandum also initiates a review of policies in the EU and the United Kingdom that could compel US tech companies to employ products or practices detrimental to free speech or conducive to censorship.
The statement from the Trump administration indicates that significant EU tech regulations will undergo careful analysis.
Trump’s administration has previously claimed that foreign governments’ taxation strategies hinder US economic interests while failing to generate local economic successes.
Executives from major US tech firms have ramped up their opposition to EU regulations since the Trump administration began.
Notably, Meta CEO Mark Zuckerberg has advocated for the protection of US companies against perceived censorship under EU rules, while Meta's chief lobbyist described such regulations as 'tariffs' at a recent gathering.
Meanwhile, Elon Musk, the owner of the social media platform X, has consistently criticized EU tech regulations through social media posts.
In related developments, the European Union estimates that Trump’s tariffs on steel and aluminum may impact up to €28 billion of EU exports, a figure significantly greater than previous encounters between the two blocs over the metals sector.
EU Trade Chief Maros Sefcovic conveyed these estimates following discussions with US counterparts, emphasizing the ongoing instability around potential tariffs.
During his trip to the US, Sefcovic attempted to clarify and refute claims he characterized as erroneous, including assertions regarding the unfairness of Europe’s value-added tax system against US interests.
The tariff conflict began in earnest during Trump’s first term in 2018 when the US imposed duties on European steel and aluminum exports amid national security concerns—an assertion that European officials dismissed as exaggerated.
Initially, the EU retaliated with targeted tariffs affecting high-profile US products, including motorcycles and apparel.
Experts predict that the EU is poised to respond quickly to any new tariffs, potentially resuming previously suspended lists of goods for counter-tariffs aimed at causing significant economic impact across critical US constituencies.
The EU has concluded its preparations and is ready to act should the US implement new measures.
The memorandum outlines the potential for tariffs on digital services taxes (DSTs) and other financial burdens that foreign governments impose on US companies operating abroad.
The White House has expressed concerns that these taxes enable countries to collect revenue from American firms solely for conducting business within their jurisdictions.
The memorandum also initiates a review of policies in the EU and the United Kingdom that could compel US tech companies to employ products or practices detrimental to free speech or conducive to censorship.
The statement from the Trump administration indicates that significant EU tech regulations will undergo careful analysis.
Trump’s administration has previously claimed that foreign governments’ taxation strategies hinder US economic interests while failing to generate local economic successes.
Executives from major US tech firms have ramped up their opposition to EU regulations since the Trump administration began.
Notably, Meta CEO Mark Zuckerberg has advocated for the protection of US companies against perceived censorship under EU rules, while Meta's chief lobbyist described such regulations as 'tariffs' at a recent gathering.
Meanwhile, Elon Musk, the owner of the social media platform X, has consistently criticized EU tech regulations through social media posts.
In related developments, the European Union estimates that Trump’s tariffs on steel and aluminum may impact up to €28 billion of EU exports, a figure significantly greater than previous encounters between the two blocs over the metals sector.
EU Trade Chief Maros Sefcovic conveyed these estimates following discussions with US counterparts, emphasizing the ongoing instability around potential tariffs.
During his trip to the US, Sefcovic attempted to clarify and refute claims he characterized as erroneous, including assertions regarding the unfairness of Europe’s value-added tax system against US interests.
The tariff conflict began in earnest during Trump’s first term in 2018 when the US imposed duties on European steel and aluminum exports amid national security concerns—an assertion that European officials dismissed as exaggerated.
Initially, the EU retaliated with targeted tariffs affecting high-profile US products, including motorcycles and apparel.
Experts predict that the EU is poised to respond quickly to any new tariffs, potentially resuming previously suspended lists of goods for counter-tariffs aimed at causing significant economic impact across critical US constituencies.
The EU has concluded its preparations and is ready to act should the US implement new measures.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
