U.S. President Donald Trump on Friday threatened a 100 percent tariff on European countries that impose digital service taxes on American corporations.
In a post to social media, the president said “numerous European countries“ are discussing or “close to actually doing this.”
“Please let this statement serve to represent that 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. “This TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not. Additionally, the 100% TARIFF will be immediately imposed, if they proceed.”
Taxes on online services are frequently imposed to combat the outside influence of Big Tech and frequently target large U.S. companies such as Apple, Amazon and Meta.
Trump’s promise to raise tariffs threatens to complicate trade talks with the European Union. Trump’s threat comes one day after EU member states approved an agreement that would slash tariffs on U.S. industrial goods and some agricultural products. In return, the U.S. would cap most tariffs on the European Union at 15 percent.
Outside of proposed taxes, the EU has in place various measures designed to crack down on outsized influence from big tech companies, such as the Digital Markets Act, which allows regulators to set strict operating rules and fine large platforms.
Several countries — including many outside of the European Union — have also imposed digital services taxes and the Trump administration has repeatedly used tariff threats to pressure them to change their behavior.
Last year, Canada walked back its digital service tax over threats made by the president. And more recently, it signaled it could revise its decision to demand online streaming giants pay 15 percent of their Canadian revenues towards supporting regional content.
Trump has previously threatened action against countries who implement digital taxes, arguing they unfairly target U.S. tech companies. Earlier this week, the U.K. government defended its use of such taxes.