Donald Trump threatens the European Union with 100% tariffs if it imposes a tax on digital giants

“Numerous European countries have been discussing the imminent implementation of a digital services tax applicable to US companies. Some of these countries are on the verge of carrying it out,” the US president said in a Truth Social publication, referring to a debate on Thursday in the European Parliament on a digital tax to finance the EU budget.

“Let this statement serve to warn that any country that imposes such a tax will immediately face a 100% tariff on each and every product sent to the United States of America,” warned the head of the White House.

He added that this tariff “will prevail over trade agreements established with said country, regardless of whether they have been implemented, signed or not” and that it “will be imposed immediately.”

The Trump government still maintains a 10% global tariff on imports even after the US Supreme Court invalidated the so-called “reciprocals” that the US president had imposed in April 2025 on all countries in the world. In the midst of a judicial swarm, it is not known if the president can still impose more taxes.

He Digital Service Tax (Digital Services Tax) is a tax that several European countries created because they maintain that large technology companies generate huge revenues in their markets, but pay few rates there when declaring profits in jurisdictions with lower tax burdens.

Trump opposes this tax because he maintains that it discriminates against American companies, because in practice They mainly affect giants such as Google, Apple, Meta, Amazon and Microsoft.

This position is not new. Already in February 2025, he signed a memorandum ordering an investigation of all foreign taxes and regulations that, according to Washington, harm US technology companies, and opened the door to trade retaliation.

Although just a few days ago the EU implemented part of the trade agreement reached with the United States, which reduces tariffs on American products, discussions are still open on the so-called “non-tariff barriers”, including European digital standards and technology taxes. In other words, Trump threatens as a negotiating tool.

The technology sector is a firm ally of Trump. The main priests had a front row seat at his inauguration last year and are generous donors even though some of the White House chief’s policies have hurt them.

The trade war with China and Iran’s closure of the Strait of Hormuz, for example, affected the manufacturing, trade and supply of key minerals and technological components for that industry. In fact, Apple announced this week that it had to raise the price of its iPads by $300 due to chip supply problems.