Washington: US President Donald Trump has warned that any European country introducing a digital services tax targeting major American technology companies will face an immediate 100 percent tariff on all goods exported to the United States.
In a post on his Truth Social platform, Trump said that several European countries were considering implementing new digital taxes and declared that the US would respond with sweeping trade penalties. Trump added that the proposed tariffs would take effect immediately and would override any existing bilateral trade agreements with the affected countries.
Trump remarked that, “Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100 percent tariff on any and all Goods sent to the United States of America.”
The announcement has raised questions over its potential impact on the United Kingdom, which has maintained a 2 percent Digital Services Tax (DST) since 2020. The UK levy applies to large search engines, social media platforms and online marketplaces with global digital revenues exceeding $759.8 million (£500 million) and UK revenues above $32.9 million (£25 million).
The tax affects several major US technology firms, including Apple, Google, Meta and Amazon. According to the UK Treasury, the measure generated more than £800 million during the 2024-25 financial year, up from £678 million the previous year.
Trump has previously criticised the UK’s digital tax, accusing it of unfairly targeting American companies. In April, he warned that Britain could face ‘a big tariff’ because of the levy. The UK Department for Business and Trade and the Treasury have yet to comment on Trump’s latest remarks.
The warning comes just days after the United States and the European Union concluded a new trade agreement, adding fresh uncertainty to transatlantic trade relations. Michael Damianos, Cyprus’ Minister of Energy, Commerce and Industry, said earlier that the EU would be prepared to respond ‘swiftly and proportionately’ if the agreement was not respected or European interests were threatened.
Several EU member states, including France, Italy and Spain, already impose a 3 percent digital services tax on large technology companies. Other European countries have either introduced or are considering similar measures aimed at ensuring multinational digital firms pay taxes where they generate revenue.
The taxes have already affected business operations, with Amazon increasing seller fees earlier this year, citing the additional tax burden in several countries. Since returning to office in 2025, Trump has pursued an aggressive trade agenda, introducing tariffs on a wide range of imports.
Although the US Supreme Court struck down an earlier attempt to impose a universal 10 percent global tariff in February, the administration has continued implementing new tariffs, including duties of between 10 percent and 12.5 percent on dozens of countries over concerns related to forced labour and trade practices. Trump’s latest threat signals that digital taxation is likely to become another major flashpoint in ongoing trade disputes between the United States and its European allies.
MOST READ | Apple signals product price hikes as AI-driven memory chip costs soar
