U.S. President Donald Trump has threatened to impose 100% tariffs on imports from any country that adopts a digital services tax. The move escalated tensions with trading partners over levies that Washington argues unfairly target American technology companies.
In a post on his Truth Social platform on Friday (26 June), Trump said several European countries were considering the imminent introduction of digital services taxes on U.S. firms, with some close to implementation.
“Any Country that imposes such a Tax will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America,” Trump wrote.
He added that such tariffs would override existing trade agreements, whether signed or pending.
Digital services taxes, adopted or proposed by several countries in recent years, are aimed at large multinational technology firms that generate significant revenue in local markets but often pay taxes elsewhere.
The United States has long opposed such measures, arguing they disproportionately affect major American companies including Google, Meta and Amazon.
Previous disputes over digital taxation have triggered trade investigations and retaliatory tariff threats, particularly with European allies.
Trump’s warning comes as some European governments revisit plans for national digital taxes amid broader debates over taxing global tech giants, despite efforts at the Organisation for Economic Co-operation and Development to establish a multilateral tax framework.
Analysts say the renewed threat raises the risk of a fresh transatlantic trade dispute, particularly if countries move ahead with unilateral taxation measures.
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