Trump threatens 100% tariffs on nations imposing digital taxes on US tech firms, escalating tensions with Europe

US President Donald Trump has warned that any country introducing digital services taxes targeting American technology companies will face an immediate 100% tariff on all goods exported to the United States. The threat marks a sharp escalation in Washington’s pushback against foreign attempts to regulate or tax major US tech giants, many of which dominate global digital markets.

In a post on his Truth Social platform, Trump criticised several governments — particularly in Europe — for moving ahead with digital tax frameworks aimed at companies providing online advertising, cloud services, app‑store operations and other digital platforms. He said the US would respond with sweeping trade penalties, adding that the proposed tariffs would override existing trade agreements and apply universally to any nation adopting such measures.

The warning comes just a day after EU member states approved a new trade agreement with the United States that caps tariffs on European imports at 15%, following months of negotiations. The deal was intended to stabilise transatlantic trade relations, but Trump’s latest remarks risk reopening tensions at a sensitive moment.

Trump has long opposed digital taxes, arguing they unfairly single out American firms such as those in the social‑media, e‑commerce and digital‑advertising sectors. Last year, he issued similar warnings, saying countries that introduced such taxes or regulatory restrictions would face “trade consequences.”

The timing of the announcement is significant. Washington and Brussels face a July 4 deadline to finalise a broader tariff arrangement that would limit duties on most EU exports. European Commission President Ursula von der Leyen had earlier reached a preliminary understanding with Trump during talks in Scotland, but the new tariff threat could complicate the final stages.

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