President Donald Trump on Friday threatened a 100% tax on imports from any country that imposes a tax on digital services from United States companies. In a post on social media, Trump took aim at European countries that he said are discussing “imminent” implementation of taxes on American companies.
Trump's Social Media Statement
“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,” Trump wrote. He added that the new tax would supersede any previously negotiated trade deals. Trump said the penalty would apply to any country that moves forward with such a tax, but he singled out European nations in his post.
Background on Digital Taxes
Trump has repeatedly pushed against foreign efforts to tax or regulate American tech giants. Last year he threatened new tariffs on any country that moved to do so. A post from last August said that digital taxes and regulation “are all designed to harm, or discriminate against, American Technology.”
Upcoming Tariff Deadline
The threat comes ahead of Trump’s July 4 deadline for the European Union and United States to approve a tariff deal that caps tariffs on most EU exports at 15%. The European Union in May finalized a trade deal with the United States that caps most tariffs on EU exports at 15%. The deal followed months of debate within the EU after European Commission chief Ursula von der Leyen tentatively struck the deal while visiting Trump’s golf course in Scotland. Digital taxes were not part of the agreement and have remained a sticking point between the U.S. and the European bloc.
