President Donald Trump threatens 100% US tariffs on nations that levy digital services taxes

On June 26, 2026, U.S. President Donald Trump posted on social media that any country imposing a digital services tax on American tech firms will face a 100% tariff on all goods exported to the United States. He said the measure would replace existing trade agreements, including the 2025 U.S.–EU deal that caps U.S. tariffs on European goods at 15% in exchange for the EU lowering its digital tax rates.

Trump also warned he could reinstate a 25% tariff on European imports such as automobiles. European lawmakers hurried to meet a July 4 deadline he set for adopting changes to avoid the retaliation. French President Emmanuel Macron reiterated France’s refusal to abandon its digital services tax, which started at 3% in 2019 and was proposed to rise to 6%. The U.S. Trade Representative’s office has previously warned France, the United Kingdom, Austria, Spain and other EU members of possible counter‑tariffs if they maintain or expand the tax.