Politics
Trump promises immediate 100% tariffs if countries levy digital services tax
President Trump is threatening to impose 100% tariffs on countries that levy a tax on American companies offering digital services.
In a social media post Friday, Trump noted that European countries are considering implementing a “digital services tax,” aimed at companies that do business in a country but do not have a physical presence there and do not pay income tax.
“European countries are discussing the imminent implementation of a digital services tax on U.S. companies,” he said on Truth Social. “Some of these countries are about to do so. Please let this statement serve to demonstrate that any country that imposes such a tax will immediately have a 100% TARIFF applied to all goods sent to the United States of America.”
A new U.S. tariff on imports from other countries would void any trade deal with a trading partner, Trump noted, adding that the 100% import duty would be imposed immediately if a country implemented a digital services tax.
About half of all European members of the Organization for Economic Co-operation and Development have proposed, announced or already implemented a digital services tax, according to the nonpartisan Tax Foundation, which notes that such taxes would primarily affect U.S. companies.
Mr Trump set a July 4 deadline for the European Union and the United States to finalize a trade deal capping tariffs on most EU exports at 15%. Digital taxes were not part of the deal and remain a sticking point between the United States and the European bloc.
The president also threatened retaliation against countries that propose digital taxes during his first term. In 2020, the US Trade Representative launched investigations into nine European Union countries that had adopted or were considering digital taxes.
Last year, Mr. Trump also threatened to impose new tariffs on any country that imposed a digital tax, saying in an August 2025 article that digital taxes and regulations were aimed at weakening American businesses.
“America and American tech companies are no longer the ‘piggy bank’ or ‘doormat’ of the world. Show respect to America and our incredible tech companies or think about the consequences!” he wrote at the time.
Edited by Aimée Picchi
The Associated Press contributed to this report.
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