Trump issues threat of tariffs in dispute over digital tax with EU
In a recent development, the European Union (EU) and the United States (US) have agreed on a tariff cap of 15 percent for almost all products, marking a significant step towards easing trade tensions. However, a potential area of discord lies in the digital sector.
The tariff agreement includes a mutual commitment to eliminate unjustified trade barriers in the digital sector. Yet, the EU's digital laws, designed to combat the spread of misinformation and ensure fair competition, have been a point of contention. Companies like Amazon, Apple, Facebook (Meta), Alphabet (Google), and Microsoft are among those affected by these regulations.
Claims that the EU's digital services law is a censorship instrument are unfounded, according to a commission spokesman. The rules, he stressed, are about ensuring fair competition and protecting children and democratic elections, not censorship.
The US government has been calling for changes to the strict EU digital laws for some time. In response, the EU has stated that it will not let US President Donald Trump dictate its rules for digital platforms and companies.
The EU's digital rules are not solely focused on combating misinformation, but also on ensuring fair competition and protecting democratic elections. Trump, on the other hand, has threatened states with additional tariffs on their exports to the US and export restrictions on American technology and computer chips, citing alleged "censorship" and regulatory actions against US tech companies.
However, it is not clear which EU member states have contemplated changing their digital laws in response to these threats. Trump did not explicitly mention the EU or individual EU states in his recent statements, but he referred to America and American technology companies as no longer being the "piggy bank" or "doormat" of the world.
In a show of support for US tech companies, Trump announced on the Truth Social platform that he would defend the US against countries attacking American technology companies. The commission spokesman reiterated the EU's stance, emphasising that the rules are about fair competition and protecting children and democratic elections.
The US interprets this commitment differently than the EU, with the EU not considering its current digital rules as unjustified. Despite the differences, both parties continue to engage in discussions to find a mutually beneficial solution.
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