Trump Threatens 100% Tariff on European Imports Over Digital Tax

President Donald Trump threatened on Friday to impose a 100% tariff on imports from any country that imposes a digital services tax on US companies, specifically targeting European nations. Source: elmundoes

In a social media post, Trump declared that any country imposing such a tax would be "immediately faced with a 100% tariff" on all goods sent to the US, overriding previous trade agreements. Source: euronewses He has consistently opposed foreign efforts to tax American tech giants, previously issuing similar threats in 2025. Source: elmundoes

Trade Deal at Risk

The threat comes just before a July 4 deadline for the EU-US trade deal that caps most EU export tariffs at 15%. The deal, finalized in May 2026, excluded digital taxes, which remain a point of contention. Source: elmundoes The UK, no longer in the EU, has imposed a 2% digital services tax since 2020 on revenues from search engines, social media, and online marketplaces. Source: euronewses

• Enforcement uncertainty: US law allows tariff investigations under Section 301, but it is unclear how Trump would execute the threat. Source: elmundoes
• UK rationale: The British government argued that corporate tax rules for digital companies had "led to a mismatch between where profits are taxed and where value is created." Source: euronewses