U.S. President Donald Trump on Friday warned that the United States would impose 100% tariffs on imports from any country that introduces digital services taxes targeting American technology companies, escalating trade tensions with Europe despite recent efforts to stabilize transatlantic economic relations.
In a post on social media, Trump said several European nations are moving toward implementing digital taxes aimed at large U.S.-based technology firms, adding that some governments are already close to enforcing the measures.
"Any country that imposes such a tax will immediately face a 100% tariff on all goods exported to the United States," Trump declared, adding that the penalties would override existing trade arrangements with Washington, regardless of whether they are currently in force or already signed.
The warning comes just one day after European Union member states reaffirmed their commitment to meeting Trump's July 4 deadline for implementing tariff reductions on U.S. goods under last year's bilateral trade agreement.
That agreement capped U.S. tariffs on European exports at 15% in exchange for the EU eliminating tariffs on a range of American industrial products. However, delays in the bloc's legislative process prompted Trump earlier to threaten reinstating tariffs of up to 25% on European imports, including automobiles, before Brussels accelerated implementation efforts.
The latest dispute centers on Europe's digital services taxes, which Washington argues unfairly target American technology giants that dominate the global digital marketplace.
French President Emmanuel Macron recently reiterated that France would not repeal its digital services tax despite pressure from Washington. Ahead of their meeting during the G7 summit, Macron said Paris would maintain its independent tax policy, rejecting external pressure to reverse the measure.
France introduced its digital services tax in 2019, imposing a 3% levy on revenue generated from digital activities within the country by companies with annual global revenues exceeding €750 million and French revenues above €25 million. French lawmakers have also proposed increasing the rate to 6%.
Before traveling to France for the summit, Trump warned that the United States would have "no choice" but to impose 100% tariffs on French wine if Paris refused to withdraw the tax.
Responding to Trump's latest threat, the European Commission said Friday that both the European Union and its member states retain the sovereign right to regulate economic activity and establish their own tax systems.
A Commission spokesperson stressed that the bloc's digital tax frameworks are designed to be non-discriminatory, applying equally to all qualifying multinational companies regardless of their country of origin.
The spokesperson added that while the European Union remains committed to pursuing a global solution consistent with G7 agreements, it would respond swiftly to any unilateral trade measures it considers unjustified.
The Office of the U.S. Trade Representative has long argued that digital services taxes adopted by France, the United Kingdom, Spain, Austria, and several other European countries unfairly discriminate against American companies, making the issue one of the most persistent sources of friction in transatlantic trade negotiations.
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