Trump Threatens 100% Tariffs on Nations Taxing US Tech Firms

United States President Donald Trump on Friday (26/6) threatened to impose 100 per cent tariffs on exports from any country that applies a digital services tax on American companies. Trump complained via social media that many European countries have implemented or are exploring such taxes, which would affect the revenue of large American technology firms in Europe. He said his administration’s new tariffs would ‘replace’ any trade agreement with the United States, ‘whether already implemented, signed, or not yet.’ ‘In addition, 100 PER CENT TARIFFS will be imposed immediately if they proceed,’ Trump wrote, without detailing how the policy would be implemented, including the legal basis he would use. The threat, aimed at several major European countries including France and Germany, comes after tensions between the United States and those nations had eased at the Group of Seven (G7) summit in early June in the resort town of Evian-les-Bains, France. At that meeting, Trump and the G7 leaders agreed to strengthen support for Ukraine and tighten sanctions against Russia. Nevertheless, Trump’s dismissive view of European countries on trade and security issues remained evident. He has repeatedly criticised Europe as a ‘one-way street’ for failing to address trade imbalances and not contributing more to their own regional security.