Trump’s Trade War Targets the Digital World – Silicon Valley and the Open Internet at Risk
As President Donald Trump doubles down on his push for “fairer” trade rules, experts warn he’s overlooking one of America’s most valuable economic weapons — digital exports. And that blind spot could come at a steep price for Silicon Valley and the future of the global internet.
💸 The “Invisible Export” Worth $600 Billion That Trump Ignores
While Trump focuses on tariffs on physical goods, the U.S. quietly leads in a far more modern sector — digital services.
Analysts estimate that America enjoys a digital trade surplus of at least $600 billion, which includes:
🔹 Online advertising
🔹 Streaming platforms
🔹 Cloud services
🔹 Digital payment systems
This makes up roughly 3.6% of global trade — and it’s still rapidly growing.
Digital surplus by firm (USD bn). Source: Allianz Trade Global Survey 2025
📉 Foreign Retaliation Looms – EU Eyes Taxes on Google and Facebook
Both the European Union and other U.S. trading partners are already preparing their response. European Commission President Ursula von der Leyen confirmed that if talks with the U.S. collapse, retaliatory measures will follow.
Potential steps include:
🔹 A digital services tax aimed at U.S. tech giants like Amazon, Meta, and Google
🔹 Tariffs on online services provided across the European market
Such actions could severely reduce revenue for American tech companies and fragment the global internet.
🧱 In a World Run by Data, the U.S. Still Focuses on Steel and Aluminum
Allianz Trade analysts warn that the U.S. government is stuck in a 20th-century mindset, while the world has moved on. Trade is no longer about containers and shipyards — it’s about routers, servers, and cloud infrastructure.
And yet, by focusing solely on goods, the U.S. is ignoring one of its strongest growth engines.
