The European Union fires back at Trump’s ultimatum over digital regulations targeting American tech giants.

💥 The Standoff Intensifies

Just one day after President Trump threatened new tariffs and chip export restrictions, the EU made its position crystal clear: Europe won’t back down.

European Commission spokeswoman Paula Pinho delivered a firm response:

> “It is the sovereign right of the EU and its member states to regulate economic activities on our territory in line with our democratic values.”

🎯 What’s at Stake?

Trump’s Target: Digital services taxes that he claims “punish U.S. innovation”

- Britain’s 2% digital tax on tech revenue

- EU’s Digital Services Act limiting big tech power

- Similar taxes in France, Italy, and Spain

Trump’s Threat: Remove these taxes or face:

- ⚡ Significant additional tariffs

- 🔒 Restricted exports of advanced chips and technology

## 📊 Tale of Two Responses

Canada: Already repealed its digital tax last month

EU: Standing firm, no plans to alter regulations

## 🔥 Political Pressure Mounts

In the UK, opposition leader Ed Davey slammed potential government surrender:

“The government must not cave to Donald Trump’s bullying. If tech magnates are making millions from our data, it’s only fair they pay their share.”

## ⚡ What’s Next?

With the EU refusing to budge, Trump’s administration may soon follow through on punitive measures, potentially escalating the trade war to new heights.

This digital tax dispute is becoming another major flashpoint where Trump wields tariffs, chips, and tech policy as weapons to protect American companies.

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