Trump threatens 100% tariffs on EU goods over digital services tax

U.S. President Donald Trump announced on Truth Social that any European country that adopts a digital services tax (DST) targeting U.S. technology firms will face an immediate 100 % tariff on all goods exported to the United States. He said the tariff would override existing trade agreements and take effect as soon as a DST is implemented.

The European Commission rejected the threat, asserting the bloc’s sovereign right to regulate economic activity on its territory and describing the U.S. move as “unjustified.” EU officials emphasized that digital taxes apply equally to all large companies, regardless of origin, and that they are pursuing a multilateral solution through the OECD’s two‑pillar framework.

Trump’s warning has raised concerns about broader economic and strategic repercussions. French, German, Spanish and Italian lawmakers have been pushing ahead with DST proposals, while NATO observers note that heightened trade tensions could strain transatlantic security cooperation. The United States cites Section 301 of the Trade Act of 1974 as legal basis for the retaliatory tariffs, framing the dispute as a defense of American tech giants such as Google, Meta, Apple and Amazon.

The standoff comes weeks before the full implementation of a U.S.–EU trade deal that would otherwise limit tariff escalations, and it adds uncertainty to already fragile relations between Washington and Brussels.