Trump threatens 100% tariffs over digital taxes on US tech firms
The president said any country taxing American technology companies would face immediate tariffs, including Europe if it moves ahead.
By Sofia Marchetti · World Affairs Correspondent
3 min read
President Donald Trump threatened to place a 100% tariff on goods from any country that imposes a digital services tax on American technology companies. The warning could reopen trade fights with Europe and other governments that have sought to tax or regulate US tech firms.
Trump made the threat Friday in a post on Truth Social, according to Al Jazeera, Reuters and The Associated Press. He said the tariff would apply to “any and all” goods shipped to the United States from countries that adopt such a tax.
Trump singled out Europe as a possible target. He wrote that “numerous European Countries” were discussing digital services taxes on American companies and that some were close to putting them in place.
The president said any country imposing the tax would “immediately” face the 100% tariff. He also said the measure would override any other trade arrangement, “whether implemented, signed, or not,” according to the post.
Pressure on digital tax plans
Digital services taxes are aimed at revenue from large technology platforms that operate across borders. Al Jazeera, Reuters and AP reported that Trump’s latest warning continues his effort to push back against overseas measures affecting major US technology companies.
Trump has made similar arguments before. In August, he said taxes and rules targeting American technology firms were “designed to harm, or discriminate against, American Technology,” according to Al Jazeera, Reuters and AP.
The warning comes as Trump has built close ties with the US technology sector during his second term, according to the news agencies. He has promised looser regulation at home and government backing for emerging technologies, including artificial intelligence.
Trump and his allies have also criticized European content moderation rules. According to Al Jazeera, Reuters and AP, they have described those rules as a form of censorship.
EU trade deal under strain
The European Union reached a trade agreement with the United States last month that capped tariffs on most EU goods at 15%, according to Al Jazeera, Reuters and AP. The deal did not spell out terms for digital services taxes.
Trump later accused the EU of failing to comply with that agreement, the news agencies reported. He set a July 4 deadline to reach a deal fixing maximum tariffs at 15%.
Friday’s post raised the prospect that a digital tax dispute could sit outside that framework. Trump said the proposed 100% tariff would take effect at once and would supersede other deals if a country enacted a digital services tax on US firms.
The threat adds another point of tension to trade negotiations between Washington and European governments. Al Jazeera, Reuters and AP reported that it is the latest example of Trump using tariffs to counter foreign policies he says disadvantage American technology companies.
This story draws on original reporting from Al Jazeera.