Trump threatens 100% tariff on European countries over digital taxes

President Donald Trump has issued a threat to impose a 100% import tariff on any European country that enacts a digital services tax targeting American technology giants. This proposed action would supersede existing trade agreements between the U.S. and these European nations. The announcement comes just days after the United States and the European Union concluded a new trade deal, suggesting a potential disruption to recently established economic understandings.

In parallel developments, the South American trade bloc Mercosur has officially initiated negotiations with Japan. The objective of these talks is to establish an economic partnership agreement, signaling Mercosur's intent to broaden its international trade relationships. Beyond Japan, Mercosur has also indicated a strong interest in pursuing future trade discussions with China, reflecting a broader strategy of expanding economic cooperation across different global regions.

Separately, Switzerland is preparing to streamline the recognition of U.S. standards for both automobiles and medical devices. This move is part of Switzerland's effort to formalize a trade agreement with Washington. The proposed measures are designed to stabilize bilateral economic relations between the two countries and offer Swiss exporters enhanced planning certainty in their international trade activities.