President Donald Trump has threatened to impose a 100% tariff on all goods from any country that imposes a digital services tax on American companies. In a social media post, Trump stated that any nation implementing such a tax would immediately be met with these tariffs on any and all goods sent to the United States.
Trump clarified that these tariffs would supersede any trade deals with the affected countries, whether those deals were signed or implemented. This threat comes a day after the European Union approved tariff reductions on U.S. goods and just days after European officials finalized a trade pact. Trump accused numerous European countries of seeking to tax U.S. companies offering digital products and services.
The tension is particularly high with France, where President Emmanuel Macron has stated that France would not bow to pressure and scrap its digital tax on U.S. tech giants. France has applied a 3% levy since 2019 on revenue from digital services earned by companies with revenues of more than 25 million euros in the country and 750 million euros worldwide. Before a G7 summit, Trump warned that the U.S. would have no choice but to apply 100% tariffs on French wine unless Paris eliminated its digital tax.