Donald Trump has threatened to impose a 100% import tariff on any European country that enacts a digital services tax on US companies. The US president made the statement on Truth Social on Friday, claiming that 'numerous European countries' had been discussing such a levy and that 'some of these countries are close to actually doing this.'
Immediate tariff threat
Trump wrote that any country imposing such a tax 'will immediately be met with a 100% TARIFF on any and all Goods sent to the United States of America.' He added that the tariff would supersede any pre-existing trade deals and take effect immediately. The threat could ignite a broader trade war between the US and the EU, potentially prompting retaliation from the 27-country bloc.
Several EU nations already have digital services taxes in place. France, Spain, and Italy levy a 3% tax on large companies operating in their jurisdictions, while other EU members have implemented or proposed similar policies. The UK imposes a 2% digital services tax on social media platforms, search engines, and online marketplaces with global digital revenues exceeding £500 million and UK revenues over £25 million. According to the UK Treasury, this tax raised more than £800 million in 2024-2025, affecting US tech giants like Apple, Google, and Amazon.
EU response
An EU spokesperson condemned the tariff threat, stating that the bloc reserves the right to defend itself. 'Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy,' said Olof Gill, a spokesperson for the European Commission. Gill emphasized that digital services taxes apply to all large companies regardless of origin, not specifically targeting US firms.
Trump has consistently opposed efforts by other countries to tax or regulate US tech companies. In April, he warned that the UK could face 'a big tariff' for what he described as targeting US companies. 'They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country,' Trump said at the time.
Trade deal deadline
The threat comes as a 4 July deadline approaches for the US and EU to implement a tariff deal. In May, the two sides signed an agreement capping most EU import tariffs at 15% after months of negotiations. However, digital services taxes were excluded from that deal and remain a sticking point in trade talks.
