Donald Trump has threatened to impose a 100% import tariff on any European country that levies a digital services tax on US companies. Writing on Truth Social on Friday, the US president said that “numerous European countries” had been discussing such a tax and that “some of these countries are close to actually doing this”.
Immediate Tariff Threat
Trump declared that any country imposing such a tax would “immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America.” He added that the tariff would supersede any prior trade deals with that country. The threat could ignite a new phase in Trump’s global trade war, potentially provoking retaliation from the 27-country EU bloc.
Existing Digital Services Taxes
France, Spain and Italy impose a 3% digital services tax on large companies operating within their borders. Several other EU nations have either implemented or proposed similar policies. The UK levies a 2% digital services tax on social media platforms, search engines and online marketplaces with global digital revenues exceeding £500m and UK revenues over £25m. According to the UK Treasury, this tax raised more than £800m in 2024-2025, affecting US tech giants like Apple, Google and Amazon.
EU Response
An EU spokesperson warned that the bloc would defend itself. “Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,” said Olof Gill, a European Commission spokesperson. Gill emphasized that digital services taxes apply to all large companies regardless of origin, not specifically targeting US firms.
Broader Trade Context
Trump has repeatedly criticized countries for taxing or regulating US tech companies. In April, he warned the UK could face a “big tariff” for what he called targeting US firms. “They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country,” Trump said. His latest threat comes ahead of a 4 July deadline for implementing a tariff deal between the US and EU. In May, the EU and US signed an agreement capping most tariffs on EU imports at 15%, but digital services taxes were excluded and remain a sticking point in trade negotiations.
