Anabelle Colaco
30 Jun 2026, 00:28 GMT+10
WASHINGTON D.C.: President Donald Trump has threatened to impose a 100 percent tariff on imports from any country that introduces a digital services tax on American companies, escalating tensions with Europe ahead of a key trade deadline.
In a social media post on June 26, Trump said countries that move ahead with such taxes would face a 100 percent tariff on all goods exported to the United States.
"Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100 percent TARIFF on any and all Goods sent to the United States of America," Trump wrote.
He added that the new tariff would supersede any previously negotiated trade agreements. Although Trump said the penalty would apply to any country imposing a digital services tax, he singled out European nations, saying they were discussing the "imminent" implementation of such measures on American companies.
Trump has repeatedly opposed foreign efforts to tax or regulate major U.S. technology firms. Last year, he warned that countries pursuing such policies could face new tariffs, saying digital taxes and regulations "are all designed to harm, or discriminate against, American Technology."
The latest warning comes ahead of Trump's July 4 deadline for the United States and the European Union to finalize a tariff agreement that would cap duties on most EU exports at 15 percent.
The European Union finalized the trade deal with the United States in May after months of negotiations. However, digital services taxes were not included in the agreement and remain a key point of disagreement between Washington and the 27-member bloc.
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