Washington: U.S. President Donald Trump announced plans to impose "substantial" tariffs on countries implementing digital taxes and regulations, a decision that may affect South Korea's digital regulatory measures.
According to Yonhap News Agency, Trump expressed his intentions through a social media post, emphasizing that the U.S. Trade Representative and American industry stakeholders are concerned about Korea's proposed regulations targeting dominant digital service platforms. These measures are perceived as potentially impacting American technology companies.
Trump stated on Truth Social, "I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country's Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips." He further emphasized that American technology companies should no longer be considered a financial resource or "doormat" for the world.
Digital trade issues were anticipated to be part of ongoing bilateral trade discussions. However, the recent trade agreement did not specifically address these concerns. As part of the agreement, the Trump administration agreed to reduce "reciprocal" tariffs on South Korea, in exchange for Seoul's commitment to invest $350 billion in the United States, among other promises.