Trump threatens 100% tariffs on countries imposing digital taxes on US tech firms

US President Donald Trump on Friday threatened to impose a 100% tariff on imports from countries that introduce digital service taxes targeting American companies, escalating his pushback against foreign regulations affecting US technology firms.

In a social media post, Trump criticised countries, particularly in Europe, that he said were preparing to implement taxes on US companies providing digital services.

"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 said in a post on his Truth Social platform, adding that "this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not."

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The move comes just a day after EU countries gave the green light to a trade agreement negotiated last year with the United States, which caps taxes on European imports at 15 percent.

He said the proposed tariffs would override any existing trade agreements and apply to countries that proceed with digital taxes. Although he referred broadly to any country taking such action, his comments specifically highlighted European nations.

Trump has repeatedly opposed digital taxes and regulatory measures aimed at large US technology companies, arguing that such policies unfairly target American businesses. Last year, he warned that countries introducing digital taxes or restrictions on US technology firms could face trade consequences.

The latest warning comes ahead of a July 4 deadline for Washington and the European Union to finalise a broader tariff arrangement that would limit duties on most EU exports to the US at 15%.

The US and EU reached a trade agreement in May that capped tariffs on the majority of European goods, following months of negotiations. European Commission President Ursula von der Leyen had earlier reached a preliminary understanding with Trump during a meeting in Scotland.

However, digital services taxes were excluded from that agreement and remain a major point of disagreement between Washington and Brussels.

The dispute reflects a broader debate over how governments should tax multinational technology companies, with several countries seeking greater revenue from digital businesses operating within their markets while the US argues that such measures disproportionately affect American firms.

With inputs from agencies