Trump threatens 100% tariffs on countries taxing U.S. tech firms

President Donald Trump has escalated his pressure on Europe over digital services taxes, warning on his Truth Social platform that any country imposing such a levy on American companies will face an immediate 100% tariff on all goods shipped to the United States. He said the tariff would override any trade agreements, whether already signed, implemented or still pending, and would take effect immediately if the countries proceed.

Digital services taxes are levies on revenue earned from digital activity inside a country, even without a major physical presence there. They differ from corporate income taxes because they are based on gross revenue, not profit, and are typically aimed at large multinationals. In practice, that has mostly meant U.S. firms such as Google, Meta, Amazon and Apple.

About 10 European countries currently apply such taxes, including Britain, France, Italy, Spain and Portugal, with rates ranging from 1.5% to 7.5%. Britain charges 2% on search engines, social networks and online marketplaces for companies with global revenue above 500 million pounds, while France has had a 3% digital-services tax since 2019.

Trump has opposed these taxes since taking office, calling them discriminatory against American tech companies. Nearly a year ago he threatened extra tariffs and export restrictions on chips and advanced technology against countries that kept what he viewed as unfair digital rules. In April he warned Britain specifically, and ahead of the G7 he threatened France with 100% tariffs on French wine and champagne unless President Emmanuel Macron dropped the tax. So far, most of those threats have not become actual tariffs. Negotiations continue at the OECD over a global alternative, but a breakthrough still appears distant in the United States, while some countries, including Canada, have moved to freeze or scrap their own taxes under U.S. pressure.