President Donald Trump has issued a warning of imposing a 100% tariff on goods from any nation that enforces a digital services tax on American companies. The announcement was made through a post on the Truth Social platform.
Trump stated that several European countries are in discussions to implement a Digital Services Tax on US companies, with some nations close to actual implementation. He emphasized that any country imposing such a tax would face an immediate 100% tariff on all goods destined for the United States.
The President clarified that this new tax measure would take precedence over any existing or pending trade agreements with the US. This move follows French President Emmanuel Macron’s recent declaration that France would not yield to pressure from Trump to revoke its digital tax on US tech firms.
France has been applying a 3% levy on digital services revenue generated by companies with earnings exceeding €25 million in the country and €750 million globally since 2019. Trump has consistently opposed foreign attempts to tax or regulate American tech giants, threatening tariffs on countries that take such actions.
The President’s ultimatum comes as the deadline for the US and the European Union to approve a tariff deal that limits tariffs on most EU exports to 15% approaches. While the EU recently finalized a trade agreement with the US imposing a 15% cap on most tariffs, digital taxes remain a contentious issue between the two parties.