President Donald Trump declared on Friday that countries moving forward with digital services taxes aimed at U.S. firms would be met with a 100% tariff on their goods shipped to the United States.
"Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies," Trump wrote on social media on Friday. "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."
The statement said the tariff would be applied immediately and would override any existing trade agreements with the nations that enact such a tax. The announcement follows the European Union's recent completion of approval for a trade deal with Washington that sets a 15% tariff ceiling on the majority of the bloc's exports to the United States.
The Trump administration has been publicly opposed to digital services taxes, arguing that they would disproportionately affect large U.S. technology companies, including Alphabet and Meta Platforms. U.S. officials have previously warned trading partners, among them members of the EU, that such taxes could prompt retaliatory actions.
In addition to warnings of tariffs, the administration has pushed for renewed multilateral discussions under the OECD framework on taxation of the digital economy, stating a desire to resolve these issues at the international level this year.
Earlier in June, the president singled out France, threatening a 100% levy on champagne and wines if Paris persisted with its digital tax. The recent social media message reiterates the administration's posture that strong, immediate measures would be used to counter digital tax initiatives seen as targeting U.S.-based firms.
Policy makers and market participants will be watching for how these statements translate into concrete actions and whether affected countries respond diplomatically or through trade measures. The administration's stance underscores friction between unilateral digital tax measures and U.S. trade policy.