SCOOP: Congress praises Trump's warning to European Union about attacks on American tech companies

President Donald Trump’s new pressure campaign targeting countries that levy predatory taxes and regulations on American companies got immediate rave reviews from his allies in and out of Congress.

“America, and American Technology Companies, are neither the ‘piggy bank’ nor the ‘doormat’ of the World any longer,” Trump posted in a lengthy Truth Social post. “Show respect to America and our amazing Tech Companies or, consider the consequences!”

“Thank you for your attention to this matter,” the president signed off.

Trump plans to “stand up to Countries that attack our incredible American Tech Companies,” he explained.

“Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” he wrote.

“With this TRUTH, 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 wrote.

Trump’s stance comes amidst trade negotiations with the European Union (EU), which recently confirmed that it will not adopt or maintain network usage fees as part of the deal.

However, some in the EU claimed that no changes are imminent in the negotiations.

Italy in particular is exploring “dispute resolution” mechanisms that could reintroduce network usage fees under another name, and even though Trump warmly welcomed Italy’s Giorgia Meloni to the White House just last week, his Truth is a shot across the bow of sorts.

Republicans, particularly on the House’s Ways and Means Committee, explained why Trump’s moves are necessary.

“Since their implementation, the Ways and Means Committee has called for swift action to fight harmful digital service taxes that unfairly discriminate against American digital businesses and innovators,” Rep. Jason Smith (R., Mo.), the committee’s chairman, explained. “I applaud President Trump for doing what the last administration refused to do and defending American businesses from these unfair taxes.”

Rep. Ron Estes (R., Kansas), who is also on Ways and Means, supports Trump’s “commitment to defending American tech companies from unfair foreign Digital Services Taxes (DSTs).”

“As someone who introduced a bipartisan resolution opposing such taxes and worked on provisions in recent tax legislation to enable retaliatory actions, I'm encouraged by this renewed focus,” Estes added.

Outside of Congress, trade policy experts explained why Trump’s move is necessary. Joe Grogan, the former director of Trump’s Domestic Policy Council, noted that his former boss’s “EU trade deal was a hard-fought win for American innovation, especially in dismantling Europe’s unjustified digital trade barriers.”

“The president is absolutely right to call out EU officials now claiming they made “no commitment” on digital regulation or taxes,” Grogan said.

"European leaders should understand that backpedaling and other bureaucratic workarounds to sustain an untenable status quo simply won't be tolerated,” Grogan, who is also the president of Public Policy Solutions, added. “President Trump will use every lever of power at his disposal to stand up for American interests."

Will Hild, the executive director of Consumer’s Research, added that "the Digital Services Tax is a perfect example of the type of non-tariff trade barriers that the Trump [administration] has been warning about.”

“EU countries think they can cut a trade deal with the US, but still get away with quietly targeting American companies with burdensome regulations/taxes,” Hild added. “President Trump is making clear he will not allow that."

Finally, the ramifications go beyond just the European Union. Michael Lucci, the founder and CEO of State Armor, which keeps Communist China in its crosshairs, put Trump’s move in a broader geopolitical context.

"Countries like Spain have embraced CCP networks in their markets while restricting American tech companies,” Lucci said. “If countries want to do business with the United States, they must stop penalizing our innovation while opening their arms to Beijing.”