Key facts
- President Donald Trump threatened a 100% import tariff on European countries with digital services taxes.
- The tariffs would supersede existing bilateral trade agreements between the US and European nations.
- Several European countries, including the UK, France, Italy, and Spain, have implemented or proposed digital services taxes.
- These taxes impact major US technology companies such as Apple, Google, Meta, and Amazon.
- The threat comes shortly after the finalization of a new trade deal between the US and the EU.
US President Donald Trump has threatened to impose a 100% import tariff on any European country that introduces a digital services tax targeting American technology giants. Trump stated on his Truth Social platform that such punitive measures would be applied immediately and would supersede any existing bilateral trade agreements.
Several European nations, including the UK, France, Italy, and Spain, currently have digital services taxes in place, which affect major US companies like Apple, Google, Meta, and Amazon. The UK's 2% tax, implemented in 2020, is projected to raise over £800 million in 2024-25. France, Italy, and Spain levy a 3% tax.
Trump's threat comes just days after the US and the European Union finalized a new trade deal. Michael Damianos, minister of energy, commerce and industry of Cyprus, indicated that the EU could respond swiftly and proportionately if the deal is not respected or its interests are threatened. Trump has previously warned the UK about potential tariffs related to its digital services tax.