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President Donald Trump has threatened to impose a 100% tariff on imports from any country that imposes a digital services tax (DST) on American technology companies. In a post on Truth Social, Trump said that 'numerous European countries' are discussing the 'imminent implementation' of such taxes and warned that any nation proceeding would face immediate punitive tariffs, overriding existing trade deals Source: BBCSource: AP News.
Several European countries, including France, Italy, and Spain, already levy a 3% DST on large digital companies, while the UK has a 2% tax on tech giants like Apple, Google, and Amazon that raised over £800 million in 2024–25 Source: The GuardianSource: BBC. Trump has long opposed these taxes, arguing they unfairly discriminate against American firms Source: Gizmodo.
The European Commission stated it would 'respond swiftly and decisively' if tariffs were imposed, calling the move 'unjustified' Source: The Guardian. However, the legal basis for Trump's threat remains unclear after the Supreme Court struck down his previous tariff authority Source: Gizmodo. The warning comes days before a July 4 deadline to implement a US-EU trade deal capping most tariffs at 15%—an agreement that notably excluded digital taxes Source: AP News.
“President Donald Trump has vowed to impose a 100% import tariff on any European country that introduces a digital services tax on American technology giants.”
“An EU spokesperson said that the economic bloc reserved the right to defend itself against such tariffs.”
“The threat comes ahead of Trump’s July 4 deadline for the European Union and United States to start implementing a tariff deal that caps tariffs on most EU exports at 15%.”
The UK, which already has a DST, has not yet commented, but Trump's post appears to target new taxes rather than existing ones Source: BBC.
“Earlier this year, the Supreme Court struck down the Trump administration’s so-called 'reciprocal' tariffs, ruling that the International Emergency Economic Powers Act did not grant Trump the authority to unilaterally impose tariffs.”
Trump threatens 100% tariff on EU imports over digital tax proposal