Former President Donald Trump has issued a warning of imposing a “100% TARIFF” on all imports from nations that enforce a digital services tax on US companies. Trump made this statement on his Truth Social account, citing discussions by various European countries regarding the taxation of American companies. He emphasized that any country implementing such a tax would face immediate 100% tariffs on goods sent to the United States.
Furthermore, Trump asserted that this new tax would take precedence over any existing or pending trade agreements with the US. The warning follows French President Emmanuel Macron’s declaration that France would not yield to pressure from Trump to eliminate its digital tax on US tech corporations.
Since 2019, France has imposed a 3% tax on digital service revenue generated by companies with earnings exceeding €25 million in France and €750 million globally. Trump has consistently opposed foreign attempts to tax or regulate American tech giants. He has previously threatened to impose tariffs on countries that pursue such measures, arguing that digital taxes and regulations are intended to harm or discriminate against American technology.
The recent warning from Trump comes as the July 4 deadline approaches for the European Union and the US to approve a tariff deal limiting tariffs on most EU exports to 15%. While the EU and the US finalized a trade agreement in May capping tariffs on EU exports at 15%, digital taxes have remained a contentious issue between the two parties.