Trump threatens 100% tariff on countries that tax US digital services

Trump threatened to impose a 100% tariff on imports from countries that tax U.S. digital services, reviving a long-running fight over how large American tech companies are taxed abroad.

The warning, first confirmed by AP at 16:39 UTC on June 26, would target countries with digital services taxes or similar levies. According to the reporting, Trump said the tariff would take effect immediately and would override existing trade deals.

The move puts Europe back at the center of a dispute that has repeatedly surfaced in U.S. trade talks with allies. Major outlets including the Wall Street Journal and Financial Times independently reported the same threat, while El País and The Times said the warning extended to European countries and Britain.

What Trump threatened

Trump said countries that tax U.S. digital services could face a 100% tariff on goods sent to the United States. The reporting says he framed the taxes as discriminatory and presented tariffs as an immediate response.

The threat was not limited to one country. The reporting said it was aimed at any government that keeps a digital services tax in place, with Europe the clearest target.

Digital services taxes are levies on revenue from digital activity rather than on profit. They are often aimed at large technology companies, many of them based in the United States.

Why Europe is in focus

The latest warning appears directed mainly at Europe, where several governments have adopted or considered digital services taxes. The AP report said the countries in focus include European states with existing DSTs or similar levies.

The Times reported that Britain was also caught up in the threat, noting that the U.K. currently levies a 2% digital services tax. Other reporting pointed to countries including France, Denmark and Portugal as part of the broader group with such taxes or similar measures.

The timing matters because the dispute has been unresolved in past U.S.-Europe trade dealings. The reporting says the tariff threat was presented as going beyond earlier trade understandings and as a direct challenge to countries that keep taxing digital services.

Brussels pushes back

The European Commission responded by saying its tax policies are not discriminatory and by defending the right of governments to legislate on digital taxation. It also said it would react firmly if needed.

That exchange captures the core clash. Trump says the taxes justify immediate retaliation against imported goods, while European officials argue the measures apply broadly and do not single out the United States.

The reporting does not show any immediate policy shift from European governments, but it does show the European side signaling that it is prepared to push back if the threat turns into action.

Trade and economic stakes

A 100% tariff would be a major escalation in the transatlantic trade relationship. It could raise costs for exporters from countries that keep digital services taxes in place and put new pressure on governments that rely on that revenue.

The threat also matters for U.S. technology companies, which have long opposed digital services taxes and have pushed Washington to challenge them in trade negotiations.

More broadly, the episode shows how digital taxation remains tied to larger arguments about trade fairness, market access and who gets to tax the profits or revenue generated by online platforms.

What to watch next

The immediate questions are whether the White House or the U.S. Trade Representative issues a formal follow-up, and whether the administration identifies countries that would be targeted first.

It is also unclear what legal authority the administration would use to impose such a tariff, or whether the threat is meant to force concessions before any enforcement step.

For Europe and other countries with digital services taxes, the next signposts are whether governments defend the levies, soften them, or try to delay any clash with Washington.

For now, the threat is a fresh escalation in a dispute that has repeatedly tested U.S.-Europe trade relations and remains unresolved.