US President Donald Trump has warned that any European country imposing a digital services tax on American technology companies could face a 100 per cent tariff on goods exported to the United States. He also said such a measure would override any existing or future trade agreements, raising fresh concerns about US-EU trade relations and global commerce. The warning places the digital services tax at the centre of another potential trade dispute between Washington and Europe.

In a post on Truth Social, Trump declared, “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,” adding that “this TARIFF will supersede Trade Deals made with the Country, whether implemented, signed, or not.”

His comments came only one day after European Union member states approved a trade agreement negotiated with the United States last year. The deal limits tariffs on European imports to 15 per cent. Despite that agreement, Trump has continued to criticise what he describes as non-tariff trade barriers, including European rules covering technology and environmental standards. He argues that these regulations restrict American exports and create unfair conditions for US businesses.

Earlier this month, Trump also threatened to impose a 100 per cent tariff on French wine and champagne unless France removed its digital services tax. The French government introduced the levy in 2019, applying a three per cent tax on revenue earned within the country by major technology firms.

The tax affects several leading American companies, including Facebook, Amazon, Apple, and Alphabet, Google’s parent company. Trump’s latest warning signals that the digital services tax remains a key issue in his broader trade policy and could increase tensions between the United States and Europe.

 

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