WASHINGTON: United States President Donald Trump has threatened to impose a 100 per cent tariff on European countries that introduce or maintain a digital services tax.
Trump made the warning on Friday in a post on his Truth Social platform, saying any country imposing such a tax would immediately face a 100 per cent tariff on goods sent to the United States.
He added that the proposed tariff would override existing trade deals, whether already implemented, signed or still pending.
European Union responds
The threat came a day after European Union countries approved a trade agreement negotiated last year with the United States. The deal caps taxes on European imports at 15 per cent.
Reacting to Trump’s remarks, the European Union said it would respond “swiftly and decisively” to protect its rights and regulatory autonomy.
Trump has repeatedly criticised what he sees as non-tariff barriers to United States trade, particularly European regulations on technology and the environment.
Digital tax dispute
Washington views digital services taxes as unfair to American technology companies, as most major global tech firms are based in the United States.
Earlier this month, Trump also threatened a 100 per cent tariff on French wine and champagne unless France removed its digital tax on technology firms.
France introduced a three per cent levy in 2019 on revenues earned inside the country by major technology companies, including Facebook, Amazon, Apple and Google parent Alphabet.
