UNIPA News Desk|| 28 June-US President Donald Trump has threatened to impose a 100 per cent import tariff on any European country that introduces or maintains a digital services tax targeting large US technology companies, raising the prospect of renewed trade tensions between Washington and Europe.
In a post on Truth Social on Friday, Trump said that several European countries were considering digital services taxes on American firms, with some close to implementing such measures. He warned that any country imposing such a tax would face an immediate 100 per cent tariff on all goods exported to the United States.
Trump said the proposed tariff would take effect immediately and would override any existing trade agreements with the affected country.
The warning has raised concerns over the possibility of another escalation in transatlantic trade relations. If implemented, the measure could trigger retaliatory action from the European Union, potentially leading to a broader trade dispute.
Several European countries, including France, Spain and Italy, currently levy a 3 per cent digital services tax on large technology companies operating within their jurisdictions. Other EU member states have either adopted or proposed similar measures.
The United Kingdom also applies a 2 per cent digital services tax on major social media platforms, search engines and online marketplaces that exceed specified global and domestic revenue thresholds. The tax applies to multinational technology companies, including Apple, Google and Amazon, and generated more than £800 million during the 2024–2025 financial year, according to the UK Treasury.
Responding to Trump’s remarks, European Commission spokesperson Olof Gill said the EU reserved the right to defend its interests against any unilateral tariff measures. He stated that digital services taxes are legitimate policy instruments that apply to all qualifying companies regardless of their country of origin.
Trump has repeatedly criticised efforts by foreign governments to tax or regulate major US technology companies, arguing that such measures unfairly target American businesses. He previously warned that countries imposing similar taxes could face increased US tariffs.
The latest warning comes as the United States and the European Union continue implementing a trade agreement reached in May, which capped most tariffs on EU imports at 15 per cent. However, digital services taxes remain outside that agreement and continue to be a contentious issue in trade discussions between the two sides.
