Trump threatens 100% tariff on European countries that impose digital tax

US President Donald Trump on Friday threatened a 100% import tariff on any European country that imposes a digital services tax on American companies, in a post on Truth Social. Trump said that "numerous European countries" have been discussing such a tax and that some are close to implementing it. He warned that any country imposing such a tax would immediately face a 100% tariff on all goods sent to the United States, overriding any prior trade deals.

The threat could trigger a new phase in Trump's global trade war and potentially lead to a larger conflict between the US and the European Union if the 27-member bloc decides to retaliate. Currently, France, Spain, and Italy levy a 3% digital services tax on large companies, while several other EU countries have adopted or proposed similar measures.

The United Kingdom has a 2% digital services tax on social media platforms, large search engines, and online marketplaces with global digital services revenues exceeding £500 million, UK revenues over £25 million, and that derive value from UK users. The tax applies to US tech giants like Apple, Google, and Amazon, and raised over £800 million in 2024–2025, according to the UK Treasury.

An EU spokesperson, Olof Gill, said the bloc reserves the right to defend itself against such tariffs. "Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy," Gill stated. He also noted that digital services taxes apply to all large companies regardless of origin, not specifically targeting US firms.

Trump has long criticized countries trying to tax or regulate US tech companies. In April, he threatened the UK with a "big tariff" over its tax policies. The president's latest warning comes as the July 4 deadline approaches for implementing a tariff deal between the EU and the US. In May, the EU and US signed a trade agreement capping most tariffs on EU imports at 15%, following months of negotiations. Digital services taxes were not included in that deal and remain a sticking point in trade talks.