Trump threatens 100% tariff on EU countries over digital services tax

WASHINGTON: US President Donald Trump on Friday threatened to slap a 100% tariff on European countries that impose a digital services tax, adding that existing trade deals would be scrapped.

“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.

He added that “this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not.”

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

Reacting to Trump’s fresh threats, the EU on Friday vowed to “respond swiftly and decisively to defend its rights and regulatory autonomy,” according to a European Commission spokesman.

Trump has repeatedly made it clear he wants to tackle so-called non-tariff barriers to trade — and strict European regulations on technology and environment are in his crosshairs.

With most tech giants based in the US, Trump views digital taxes as a hindrance to US exports.

Earlier this month, Trump threatened to impose a 100% tariff on French wine and champagne unless Paris removed its digital services tax on technology firms.

France imposed in 2019 a three-percent levy on the revenues earned by technology firms, including US giants Facebook, Amazon, Apple and Google’s parent Alphabet, within the country’s borders.