White House’s Hassett Threatens Retaliation Over Foreign Digital Services Taxes

White House senior economic adviser Kevin Hassett said digital services taxes have become a central issue in ongoing international trade negotiations. Speaking on 30 June, Hassett cautioned that Washington views the levies—which several jurisdictions impose on large U.S. technology firms—as discriminatory measures against American companies. Hassett added that nations adopting or maintaining a digital services tax should expect the United States’ “wrath,” a remark that suggests the administration is prepared to consider retaliatory actions. His comments underline escalating tensions over how governments tax cross-border digital revenues and signal that the U.S. may harden its stance in forthcoming trade talks.