'100% tariff': Trump threatens countries planning digital services tax on US firms

Escalating his trade offensive against digital taxes targeting American companies, US President Donald Trump on Friday warned that any country imposing a Digital Services Tax (DST) would face 100% tariffs on exports to the United States warning that such duties would override existing trade agreements.In a post on his social media platform, Truth Social, Trump said several European countries were discussing or moving towards implementing digital taxes targeting US firms."Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies. Some of these Countries are close to actually doing this," Trump wrote. He warned that any country proceeding with such a tax would face immediate retaliatory action."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 adding, "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."Trump had repeatedly pushed back against foreign efforts to tax or regulate American technology companies. Last August, he had threatened to impose fresh tariffs on any country that moved ahead with such measures, saying digital taxes and regulations "are all designed to harm, or discriminate against, American Technology."The latest warning came ahead of Trump's July 4 deadline for the United States and the European Union to approve a tariff agreement capping duties on most EU exports at 15%.The European Union had finalised the trade deal with the United States in May after months of negotiations, following European Commission President Ursula von der Leyen's meeting with Trump in Scotland. However, digital services taxes had remained outside the agreement, continuing to be one of the key sticking points between Washington and the European bloc.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.