Donald Trump threatens 100% tariff on EU nations over digital services tax

U.S. President Donald Trump posted on Truth Social that any country imposing a digital services tax on American technology firms will face a 100 % tariff on all goods shipped to the United States. He wrote, “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,” and added that the tariff would override any existing trade agreements.

The warning targets European states that are debating or have already introduced digital services taxes, such as France, Italy, Spain, the United Kingdom and others. The move comes a day after the EU Council approved a trade pact that caps most U.S. import duties on EU goods at 15 % but does not address digital taxes. The President set a July 4 deadline for the agreement’s implementation and said the tariff would take effect immediately.

The European Commission responded that the bloc has the sovereign right to regulate its economy and will “respond swiftly and decisively” to any unilateral measure, citing spokesperson Olof Gill. The threat raises the risk of a broader trade confrontation between Washington and the 27‑member EU, potentially affecting billions of dollars in trans‑Atlantic trade.