Former US President Donald Trump has issued a stern warning, threatening to impose a “100% TARIFF” on all products originating from countries that levy a digital services tax against American businesses. In a recent post on Truth Social, Trump highlighted that several European nations are in talks to implement such a tax on US companies, with some nearing the actual execution stage. He emphasized that any country imposing this tax would face an immediate 100% tariff on all goods imported into the United States.
Trump made it clear that this new tax would override any existing or pending trade agreements with the US. This move follows French President Emmanuel Macron’s stance last week, reaffirming that France would not buckle under pressure from Trump to rescind its digital tax on US tech firms. Trump had previously cautioned that if Paris persisted with its digital tax, the US would have no option but to enforce 100% tariffs on French wine.
Since 2019, France has implemented a 3% tax on digital service revenue earned by companies with over €25 million in-country revenue and €750 million globally. Trump has consistently opposed foreign attempts to tax or regulate American tech giants. Last year, he indicated that any country taking such actions would face new tariffs. He believes that digital taxes and regulations are intended to harm or discriminate against American Technology.
This warning from Trump comes ahead of the July 4 deadline for the European Union and the US to ratify a tariff agreement capping most EU exports tariffs at 15%. While the EU recently finalized a trade deal with the US maintaining the 15% cap on most exports, digital taxes have not been incorporated into the agreement, continuing to be a contentious issue between the US and the European bloc.
