The European Union has pushed back against claims of "unfair overseas digital regulation" after U.S. President Donald Trump threatened to impose tariffs and other penalties on countries that tax online services such as social media and e-commerce platforms.

"The EU and its member states have the sovereign right to regulate economic activities on their territory, and these regulations are in line with our democratic values," EU Commission spokesperson Paula Pinho told reporters in Brussels on Tuesday.

Trump did not specify which countries he was targeting, but threatened that in retaliation against nations imposing digital services taxes on American companies, the U.S. would implement export restrictions on advanced technology and semiconductors and raise tariffs. He posted on social media Monday evening that these countries' digital services taxes are "designed to harm or discriminate against American tech companies."

Trump has long expressed dissatisfaction with EU technology and antitrust regulations targeting American tech giants, including Google under Alphabet Inc., Apple Inc., and Meta Platforms Inc. Additionally, the U.S. has recently pressured the European Commission to relax its AI Code of Practice.

Trump added in his post: "Even more outrageous is that they completely let Chinese big tech companies off the hook."

The European Commission on Tuesday rejected Trump's allegations that EU rules such as the Digital Services Act (DSA) and Digital Markets Act (DMA) are discriminatory and specifically target the United States.

"The Digital Services Act does not care about companies' 'color,' jurisdiction, or ownership. The Digital Services Act and Digital Markets Act apply to all platforms and companies operating in the EU, regardless of where they are registered," said EU Commission spokesperson Thomas Regnier.

This latest disagreement comes as the EU prepares to introduce legislation this week to formalize details of a joint trade framework reached with the United States - a framework that would eliminate tariffs on some U.S. exports.

Before this legislation is introduced, the U.S. will not reduce the 27.5% tariffs on EU automobiles and auto parts to the previously agreed 15%.

The agreement has faced criticism from several EU member states, and the European Commission, which handles EU trade affairs, has previously stated that the agreement is "not reciprocal and not in the EU's interests."

EU Commission President Ursula von der Leyen defended the agreement, calling it "a strong agreement, even if not perfect."

In a guest commentary published Sunday in Germany's Frankfurter Allgemeine Zeitung, von der Leyen wrote that the 15% tariff facing the EU "covers all product categories" and "allows European goods to enter the U.S. market on more favorable terms, bringing significant advantages to EU companies."

Pinho said the European Commission plans to present relevant proposals in August, adding that "the agreement does bring predictability and stability."

This transatlantic dispute recalls Trump's threat to Canada in June, when he said the U.S. would abandon trade negotiations with its northern neighbor if Canada implemented its proposed digital tax. A few days later, the Canadian government chose to back down just before the digital tax was set to take effect.

In the U.S.-UK trade agreement, the issue of Britain's digital services tax remains unresolved. The U.S. calls it "discriminatory and unreasonable" and says it "should be immediately eliminated."