US President Donald Trump has threatened to impose a 100% tariff on all goods from any country that enacts a digital services tax on American technology companies. The warning, posted on his Truth Social account, targets European nations discussing such taxes.
Trump's Truth Social Warning
In his post, Trump stated: 'Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies. Some of these Countries are close to actually doing this. 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.' He added that the tariff would override any existing trade deal with the US, 'whether implemented, signed or not.'
Background: France's Digital Tax
The threat follows French President Emmanuel Macron's announcement last week that France would not bow to US pressure to scrap its digital tax. France has charged a 3% digital services tax since 2019 on revenue from companies earning over €25 million in France and €750 million worldwide. Trump previously warned of 100% tariffs on French wine unless the tax was removed. 'I asked [Macron] not to charge American companies, and if they do, I have no choice but to charge a 100% tariff on all champagnes and all wines coming out of France,' Trump told The New York Post. 'All [Macron] has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.'
Broader Trade Context
Trump has consistently opposed foreign efforts to tax or regulate US tech giants. In August last year, he threatened tariffs on any country introducing such measures, calling digital taxes and regulation 'all designed to harm, or discriminate against, American Technology.' The latest threat comes ahead of a July 4 deadline for a US-EU tariff deal that would cap most EU exports at 15%. The deal, struck last July between Trump and European Commission President Ursula von der Leyen in Scotland, did not address digital taxes, which remain a contentious issue between the US and the European bloc.
