WASHINGTON, Jun 27: US President Donald Trump on Friday threatened to slap a 100 percent tariff on European countries that impose a digital services tax, adding that existing trade deals would be scrapped.
"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 said in a post on his Truth Social platform.
He added that "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not."
The move comes just a day after EU countries gave the green light to a trade agreement negotiated last year with the United States, which caps taxes on European imports at 15 percent.
Reacting to Trump's fresh threats, the European Union on Friday vowed to "respond swiftly and decisively to defend its rights and regulatory autonomy," according to a European Commission spokesman.
Trump has repeatedly made it clear he wants to tackle so-called non-tariff barriers to trade -- and strict European regulations on technology and environment are in his crosshairs.
With most tech giants based in the United States, Trump views digital taxes as a hindrance to US exports.
Earlier this month, Trump threatened to impose a 100 percent tariff on French wine and champagne unless Paris removed its digital services tax on technology firms.
France, Italy and Spain also impose a digital services tax of 3% on large companies operating in their countries, and several other EU nations have implemented or proposed a similar tax, according to Tax Foundation, a nonprofit group focused on tax policy. France imposed in 2019 a three-percent levy on the revenues earned by technology firms, including US giants Facebook, Amazon, Apple and Google's parent Alphabet, within the country's borders.
While the post targets nations planning the "imminent implementation" of new levies, the precise implications for the UK were not immediately clear, given London has had such a tax in place since 2020.
"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," he wrote.
Britain's 2% Digital Services Tax (DST) applies to major search engines, social media platforms, and online marketplaces with global revenues from their digital businesses exceeding £500 million, and total UK revenues surpassing £25 million.
It impacts some of the largest US companies, including Apple, Google, Meta, and Amazon and raised more than £800 million in 2024�"25, up from £678 million in 2023�"24, according to the Treasury.�" AGENCIES
