US President Donald Trump has threatened to impose a 100% tariff on imports from any country that introduces a digital services tax on American technology companies, escalating tensions with Europe over the taxation of Big Tech.
In a post on Truth Social, Trump said countries planning such taxes would face immediate trade penalties. “Please let this statement serve to represent that 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,” he wrote. He added that the tariff would override any existing trade agreements with the US.
Trade deal leaves digital tax dispute unresolved: The warning comes days after the US and the European Union reached a trade deal that capped tariffs on most EU exports at 15%. However, that agreement did not include digital services taxes, which remain a major point of disagreement.
Several European countries, including France, Italy and Spain, already levy a 3% digital services tax on large technology companies. The UK has imposed a 2% tax since 2020 on major search engines, social media platforms and online marketplaces above certain revenue thresholds.
India’s digital tax journey: India had also introduced its own version in 2016. It imposed a 6% equalisation levy, widely known as the “Google Tax”, on digital advertising services provided by foreign companies. The government expanded its scope in 2020 by introducing a 2% levy on e-commerce services offered by overseas digital firms.
However, India began withdrawing the tax after reaching a 2021 agreement with the US on transitioning to the OECD’s global tax framework. The government first scrapped the 2% levy in 2024 and then abolished the original 6% digital advertising levy in 2025. It said the move was aimed at addressing “the uncertainty in international economic conditions.”
Trump’s latest warning also echoes a similar statement he made in August 2025, when he threatened additional tariffs on countries that imposed digital taxes or regulations on US technology companies.
EU warns of retaliation: Trump has repeatedly opposed foreign taxes and regulations targeting US technology companies, arguing they unfairly discriminate against American businesses. Earlier this month, he also threatened France with a 100% tariff on French wine and champagne unless it removed its digital services tax.
The latest threat has prompted a warning from the European Union. European Commission spokesperson Olof Gill said, “Unilateral measures targeting such legitimate policies are unjustified. If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy.”
It remains unclear how the US would implement the proposed tariff or whether it would target specific countries or apply more broadly.
Read more:
Source link
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We blogs.grocliq.com want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
Website Upgradation is going on for any glitch kindly connect at [email protected]
