Trump threatens 100% tariff on countries that impose digital services taxes

On June 26, Donald Trump threatened to impose 100% tariffs on imports from countries that levy digital services taxes on U.S. technology companies, reviving a trade fight that has repeatedly strained transatlantic relations.

The warning, reported by the Associated Press, the Wall Street Journal, the Financial Times and others, was aimed primarily at European governments that maintain digital taxes on large platforms and online businesses. France, Denmark and Portugal were among the countries cited in coverage as having such levies in place.

Trump's threat came despite a broader EU-U.S. tariff framework that has moved forward this month. Coverage said that agreement lowered tariffs on many goods to 15%, but left the digital services tax issue unresolved.

What Trump threatened

According to the reports, Trump said countries that tax U.S. digital services firms could face 100% tariffs on their exports to the United States. The enforcement mechanism was unclear.

Digital services taxes are revenue-based levies often aimed at large online advertising, marketplace and data-driven businesses. U.S. officials and companies have long argued that they disproportionately target American tech firms such as Amazon and Meta.

Why it matters

The latest threat raises the risk of a new round of trade retaliation between Washington and Europe. If carried out, the tariffs could affect exports from countries already collecting digital services taxes and intensify pressure on governments weighing whether to keep, change or expand those regimes.

It also highlights a gap in the recent U.S.-EU trade deal: while the framework addressed tariffs on many goods, it did not settle the digital tax dispute.

What to watch next

The next question is whether Trump turns the warning into a formal trade action or leaves it as a threat. Officials in Washington and Brussels have not yet fully addressed how, or whether, the dispute would fit into the current trade framework.

Any public response from the White House, the U.S. trade representative or the European Commission would be the clearest sign of whether the fight is escalating further.