US President Donald Trump is considering imposing tariffs on digital services provided by big tech companies as a countermeasure against taxes imposed on their online operations. The move aims to protect American businesses and consumers from what Trump sees as unfair foreign taxes.
The president’s proposal comes after the European Union introduced a digital services tax (DST) last year, which targets multinational corporations with significant online presence. The DST is expected to generate around €3 billion in revenue annually for EU countries.
Trump’s plan to impose tariffs on digital services could have far-reaching consequences for global trade and competition. It may also lead to a trade war between the US and EU, potentially impacting other industries beyond tech.
Industry experts say that the move would be a significant escalation of tensions between the two economic superpowers. “Tariffs are a blunt instrument,” said one expert. “They can hurt both sides in a trade dispute.”
Source: https://www.ft.com/content/558b5a20-c25e-483d-8fdc-bbfd2923afd1