In recent days, President Trump of the United States has issued a warning that any country implementing digital regulatory measures will face “significant tariffs” sanctions. He bluntly stated that such regulations often punish American companies while allowing Chinese companies to be exempt.
Although Trump’s post on Truth Social did not mention a specific country, multiple sources indicate that his comments are mainly directed at multiple digital bills under review in the South Korean National Assembly.
In his post, Trump criticized the so-called “digital tax,” “digital service legislation,” and “digital market rules” as measures aimed at attacking or discriminating against the U.S. technology industry. He accused these policies of “absurdly favoring the largest Chinese tech companies,” enabling Beijing companies to retreat unscathed while American companies bear the brunt. Trump emphasized that this situation must be stopped immediately.
He further stated, “As the President of the United States, I am issuing a warning to all countries promoting digital taxation, legislation, rules, or regulations. If these discriminatory measures are not withdrawn, the United States will impose significant tariffs on products exported to the U.S. and restrict their access to our highly protected technology and chips.”
Trump reiterated that “the United States and American tech companies are no longer the world’s ATM or doormat,” demanding that countries show respect for the United States and its innovations or “face the consequences.”
During his campaign, South Korea’s newly elected president, Lee Jae Myung, promised to strengthen regulation on large platforms and support various platform bills proposed by the parliament, including the Platform Competition Promotion Act (PCPA). It is widely believed that this move may lead to Google, Apple, Amazon, and other U.S. tech giants being labeled as “monopolists” and facing heavy penalties.
Multiple media reports have pointed out that last month, during a meeting at the White House between Trump and Lee Jae Myung, the U.S. side expressed strong dissatisfaction with South Korea’s digital platform bills and hinted at possible retaliatory tariffs.
Under pressure, the South Korean government agreed to abandon some overly stringent proposals and opt for milder legislative alternatives. However, the White House still believes Seoul’s policy direction lacks clarity and continues to exert pressure to safeguard American business interests.
U.S. Trade Representative Jamieson Greer explicitly stated during a nomination hearing before the Senate Finance Committee in early August that the U.S. would not tolerate discriminatory digital rules or administrative restrictions against American companies. He emphasized that related issues have become a core element in almost all U.S. trade negotiations.
Conservative commentator Charlie Kirk recently criticized the South Korean government on the social platform X, accusing them of continuing to suppress American businesses through regulations while favoring Chinese companies. He stated, “Only Trump can solve this problem; America should not be punished anymore.”
Since 2022, the Korea Fair Trade Commission (KFTC) has been promoting the Platform Competition Promotion Act (PCPA), similar to the European Union’s Digital Markets Act (DMA), in an attempt to regulate dominate platforms through ex-ante control. However, under U.S. pressure, the commission withdrew related agendas in September last year and opted to regulate platform behavior through amendments to the Fair Trade Act.
Former U.S. National Security Advisor Robert O’Brien warned as early as 2023 that such bills were equivalent to a “gift to the Chinese Communist Party” since tech giants under Beijing’s control often find ways to evade restrictions.
Republican Representative Carol Miller introduced the U.S.-Korea Digital Trade Enforcement Act as early as September last year and reintroduced a new version in May this year. She pointed out that South Korea’s proposed platform regulations might “unduly burden American enterprises while benefiting Chinese tech companies.”
The European Union’s Digital Markets Act (DMA) came into effect in November 2022 and began widespread implementation in May 2023, viewed by the Trump administration as a policy targeting American tech companies.
According to the DMA, companies like Google, Amazon, Apple, ByteDance, Meta, and Microsoft, referred to as “gatekeeper firms,” must allow users to uninstall pre-installed software, avoid self-preference practices, with violators facing fines up to one percent of global revenue.
Earlier this year, the EU fined major tech companies for the first time under this law, with Apple fined €500 million for restricting user choice, and Meta fined €200 million for violating data processing regulations.
Trump made it clear that any country’s digital regulations or digital service taxes would be considered “non-tariff barriers,” and the U.S. would take retaliatory tariff measures. He ordered relevant departments in February this year to investigate and formulate reciprocal countermeasures.
In response to Trump’s recent warning, EU officials quickly emphasized that regulating economic activities was their “sovereign right” and refuted claims that related measures specifically targeted American businesses.
According to Reuters, Meta CEO Mark Zuckerberg expressed concerns about foreign-driven “digital service taxes” during a private meeting with Trump at the White House in August this year.
Today, on September 4th, Trump will host over twenty technology and business leaders at the White House Rose Garden, including Apple CEO Tim Cook, Microsoft co-founder Bill Gates, Zuckerberg, OpenAI CEO Sam Altman, among others. This meeting is seen as a significant signal of adjusting cooperation between Silicon Valley and Washington.
It is believed that this meeting symbolizes the adjustment of relations between Silicon Valley and Washington, highlighting Trump’s influence on artificial intelligence and emerging technology policies. Reports indicate that both sides are gradually coming together on AI regulation, racial and diversity issues, and Silicon Valley companies are increasingly interested in White House policies, including reducing mandatory diversity regulations.
(This article references reports from “Politico” and the “Financial Times.”)