US President Donald Trump has threatened to impose a 100% import tariff on any European country that levies a digital services tax on American companies. The warning, posted on Truth Social on Friday, targets what Trump described as "numerous European countries" that have been discussing or implementing such taxes.
Trump's Statement and Immediate Impact
"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," Trump wrote. He added that the tariff would supersede any prior trade deals and take effect immediately. This threat could reignite tensions in Trump's global trade war, which has already seen drastic tariffs imposed on multiple countries and economic blocs.
Existing Digital Services Taxes in Europe
France, Spain, and Italy currently impose a 3% digital services tax on large companies operating within their borders. Several other EU members have either implemented or proposed similar policies. The UK also maintains a 2% digital services tax targeting social media platforms, search engines, and online marketplaces with global digital revenues exceeding £500 million and UK revenues over £25 million. According to the UK Treasury, this tax raised more than £800 million in 2024-2025, affecting US tech giants like Apple, Google, and Amazon.
EU Response and Potential Retaliation
An EU spokesperson condemned the threat, stating that the bloc reserves the right to defend itself. Olof Gill, a spokesperson for the European Commission, said: "Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy." Gill emphasized that digital services taxes apply to all large companies regardless of origin, not specifically targeting US firms.
Broader Trade Context
Trump has consistently opposed foreign taxes on US tech companies, previously warning the UK of a "big tariff" for similar policies. In April, he accused countries of trying to "make an easy buck" by taking advantage of the US. The threat comes as a 4 July deadline approaches for the EU and US to implement a tariff deal signed in May, which caps most tariffs on EU imports at 15% after months of negotiations. Digital services taxes were excluded from that agreement and remain a sticking point in trade talks.
If Trump follows through, the 27-nation EU could retaliate, potentially escalating into a larger transatlantic trade war. The UK, though no longer an EU member, also faces pressure as its digital services tax continues to draw US ire.
