WASHINGTON — President Donald Trump issued a stark warning Friday, threatening to impose a 100% tax on imports from any nation that levies a digital services tax on American companies.
Trump made the announcement via social media, calling out European countries he said are moving toward “imminent” implementation of taxes targeting U.S. tech firms. Many countries have been seeking new revenue streams as their economies shift increasingly toward digital commerce — a space largely dominated by American businesses.
“Please let this statement serve to represent that 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 in his post.
Trump also stated that the new tariff would override any previously established trade agreements. While the warning applies to any country that moves forward with a digital services tax, Trump’s post specifically called out European nations.
This is not the first time Trump has pushed back against foreign efforts to tax or regulate American technology companies. Last August, he warned of new tariffs on any nation taking such steps, writing that digital taxes and regulations “are all designed to harm, or discriminate against, American Technology.”
The latest threat comes just ahead of a July 4 deadline for the European Union and the United States to begin carrying out a tariff agreement that caps most EU export tariffs at 15%. That deal was finalized in May, following months of internal EU debate after European Commission chief Ursula von der Leyen tentatively reached the agreement last year during a visit to Trump’s golf course in Scotland.
Digital services taxes were not included in that agreement and have continued to be a point of contention between Washington and the European bloc.
The U.S. government has previously launched tariff investigations into digital services taxes under Section 301 of the Trade Act of 1974. However, it remains unclear exactly how Trump would carry out his latest threat or whether tariffs would be applied broadly or targeted at specific countries first.
Britain, which is no longer a member of the EU, has collected a 2% digital services tax since 2020. The tax applies to revenues earned by search engines, social media platforms, and online marketplaces that “derive value” from users in the United Kingdom.
When the tax was introduced, the British government said in a policy document that existing corporate tax rules for digital businesses had “led to a misalignment between the place where profits are taxed and the place where value is created.” The tax was designed to apply mainly to large international companies and was meant to “ensure the large multinational businesses in-scope make a fair contribution to supporting vital public services.”
