Trump threatens 100% tariffs over digital services taxes

President Trump warned Friday that any country imposing a digital services tax on American companies would face an immediate 100% tariff on all goods it sends to the United States, escalating a long-running dispute with European governments over taxes aimed largely at major U.S. technology firms.

In a post on Truth Social, Trump said “numerous European Countries” were discussing the “imminent implementation” of such taxes and that some were close to moving ahead.

“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.

He added that the tariff would override existing or pending trade arrangements. “This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not,” he said. “Additionally, the 100% TARIFF will be immediately imposed, if they proceed.”

Digital services taxes are designed to collect revenue from companies that do business in a country without a large physical presence there and may not pay income tax under traditional rules. According to the nonpartisan Tax Foundation, roughly half of European members of the Organisation for Economic Co-operation and Development have proposed, announced or already implemented a digital services tax. The group says the measures would mostly affect U.S. companies.

The threat comes as the United States and the European Union face a July 4 deadline set by Trump to finalize a trade agreement that would cap tariffs on most EU exports at 15%, CBS News reported. Digital taxes were not included in that agreement and have remained a point of tension between Washington and the European bloc.

France has had a 3% levy in place since 2019 on revenue from digital services earned by companies with more than €25 million, or about $28.5 million, in revenue in France and €750 million, or about $850 million, worldwide, The Guardian reported. French President Emmanuel Macron said ahead of a meeting with Trump at the G7 summit last week that France would not yield to U.S. pressure to scrap its tax on large American technology companies.

Before leaving for the summit in France, Trump had threatened 100% tariffs on French wine unless Paris eliminated the digital tax, The Guardian reported. His latest warning broadens the threat from wine to all goods from any country that proceeds with such a tax.

The Guardian also reported that Trump’s broader tariff strategy has faced legal setbacks. Last month, the U.S. trade court ruled against his attempt to impose a 10% global tariff, finding that across-the-board tariffs were not justified under a 1970s trade law. Earlier this month, Trump threatened tariffs of between 10% and 12.5% on 60 trading partners, including the United Kingdom, the European Union and Australia, over alleged forced labor failures, according to The Guardian.

Trump’s Friday statement did not name specific countries beyond referring to European governments, but it made clear that any digital services tax targeting American companies would trigger the threatened duties immediately.