President Donald Trump threatened to impose 100% tariffs on all goods imported from any country that adopts a Digital Services Tax (DST) targeting U.S. technology companies, escalating a trade dispute with European nations over digital taxation.
Trump wrote on a June 26 social media post that several European countries were considering implementing digital taxes on American companies and warned that any country moving forward with such measures would face immediate tariff action.
The Trump administration has long argued that these levies discriminate against American tech firms, which dominate the sector globally.
"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," Trump wrote on Truth Social.
"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 added that the tariffs would override existing trade agreements with the countries, whether signed or already in effect.
This comes as trade negotiators work on a broader U.S.-EU trade deal that follows a recently reached arrangement that caps many EU tariffs at 15%, after Trump set a July 4 deadline for European leaders to come to terms with his trade policies.
Concerns are now being raised that the new tariff threat could unravel the agreement.
The dispute centers on taxes that target revenue earned by large technology companies operating in foreign markets. The measures could affect major U.S. firms, including Meta Platforms, Alphabet, and Amazon. The Trump administration argues that these taxes unfairly target American businesses, while European governments say they aim to ensure multinational technology companies pay taxes where they generate revenue.
European officials have vowed to defend the bloc’s ability to regulate and tax companies operating within its markets. The confrontation increases the risk of retaliatory tariffs and a wider trade conflict between Washington and Brussels.
“Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,” wrote Olof Gill, a spokesman for the European Commission, in a press statement.
Gill defended the levy on major tech companies as “non-discriminatory” and applied equally to “all large companies, regardless of their origin.”
France remains a major point of conflict, with the president earlier this month threatening the country with 100% tariffs on all champagnes and wines if the country went ahead with a digital tax.
The French government has a 3% digital services tax on major technology companies, predominantly American. French lawmakers last year proposed doubling the tax to 6%.
Despite no longer being part of the EU, the United Kingdom faces the threat of U.S. tariffs for its 2% Digital Services Tax on revenues earned by search engines, social media platforms, and online marketplaces that derive value from British users.
White House officials told the Washington Examiner that new tariffs could be implemented under Section 301 of the Trade Act of 1974, but it is unclear how broadly they would be applied or if certain nations in particular would be targeted initially.
The administration also faces legal uncertainty over its ability to impose sweeping tariffs. Previous tariff actions have faced court challenges from critics of the administration, creating questions over whether the new measures would survive legal review.
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