President Donald Trump threatened to impose a retaliatory “100% TARIFF” on imports from any country that enforces a digital service tax on U.S. companies.
Addressing the “Numerous European Countries” that have been in talks about the “imminent implementation of a Digital Services Tax on American Companies” and those “close to actually” enforcing it, President Trump affirmed that they will “immediately be met with a 100% Tarriff on any and all GOODs” imported to the U.S.
“This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100% TARIFF will be immediately imposed, if they proceed,” the president concluded in his Truth Social announcement.
President Trump's Previous Pushback
President Trump has previously pushed against foreign efforts to tax or regulate American tech companies, arguing that the digital taxes and regulations “are all designed to harm, or discriminate against, American Technology.”
In 2025, the president vowed to cut off all trade negotiations with Canada over the nation’s own proposed version of the duty.
In response, the Canadian government reversed the levy right before it was scheduled to come into effect.
Digital services taxes are usually designed to apply solely to the world’s largest and most established tech companies, such as Apple, Meta, and Microsoft.
U.S.-EU Trade Agreement
President Trump’s warning comes right before the president’s deadline for the European Union (EU) and the U.S. to begin enforcing a tariff agreement meant to cap tariffs on a majority of EU exports to 15%.
How Will Trump Impose the Tarriffs?
It is not yet clear how President Trump would impose the immediate retaliatory duty on individual nations, given the U.S. Supreme Court’s strike down of the president’s “reciprocal” tariffs.
Following the loss, President Trump issued an executive order imposing a global 10% tariff under Section 122 of the Trade Act of 1974.
The statute, however, allows the duty to last for 150 days, with Congressional approval needed for an extension.
