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The US president is ready to reintroduce trade tariffs against Brussels and Ottawa. Digital Services Taxes on Apple, Google, and Amazon are in the crosshairs
Donald Trump is once again raising the spectre of a trade war. With the 9 July deadline fast approaching, which could mark the end of the temporary suspension of tariffs against the European Union, the US president is also raising his voice against Canada, accused of targeting American big tech companies with a new Digital Services Tax (DST).
‘The EU is very bad, but it will soon learn not to be. They know what’s coming,’ Trump said, reiterating that the European bloc was ‘created to gain commercial advantages against the United States’ and threatening 50% tariffs if Brussels does not accept a new agreement. ‘They didn’t want to negotiate, then they started calling right away,’ he added, referring to contacts with European Commission President Ursula von der Leyen.
European judges are also in the crosshairs, accused of imposing ‘frightening fines’ on companies such as Apple and Google. ‘Their judges work for the EU, I don’t want our companies to pay the price for these bad people,’ Trump said.
The most direct attack, however, is on his northern neighbour. ‘Canada is copying Europe,’ he said, referring to the digital services tax announced by Ottawa, which affects giants such as Meta, Amazon, Microsoft, Apple and Google, taxing them regardless of their economic success.
Trump denounced the measure as a ‘direct and blatant attack,’ threatening to halt all trade negotiations with Ottawa. ‘We will let Canada know what the tariff will be within seven days,’ he warned.
Canadian Prime Minister Mark Carney tried to tone down the rhetoric: ‘We will continue to negotiate in the interests of Canadians. It is a complex negotiation.’
Trump announced that by mid-July, some countries will receive a letter with the tariffs to be applied, and hinted that the 9 July deadline is not binding: ‘We can shorten it, extend it, do whatever we want. I would like to send letters and say, “Congratulations, you pay 25%”.’
Finally, he said that agreements have already been reached with four or five countries, including China and the United Kingdom, and that ‘others will follow soon.’
The White House’s message is clear: those who do not comply with American conditions will be hit with new tariffs. Trump’s hard line ahead of the vote is once again consolidating on muscular trade diplomacy.
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(Photo: © AndKronos)
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