Washington: U.S. President Donald Trump has warned that any country imposing a digital services tax on American technology companies could face a 100% tariff on all goods exported to the United States, significantly escalating global trade tensions.
In a statement posted on his social media platform, Trump said that countries targeting U.S. technology firms through digital taxes would face severe trade consequences, adding that the proposed tariffs would override existing or future trade agreements if necessary.
The warning is primarily aimed at countries that have introduced or are considering digital services taxes on large American technology companies such as Apple, Meta, Amazon, Google, and Microsoft. The United States has long argued that these taxes unfairly discriminate against U.S.-based firms.
The European Union responded by defending its taxation policies, stating that its rules apply fairly to all eligible companies and warning that it would respond firmly to any unilateral U.S. trade measures.
The latest threat comes amid ongoing negotiations between the United States and several trading partners over tariffs and digital taxation, raising concerns that a fresh trade dispute could disrupt global commerce and further strain transatlantic economic relations.