Donald Trump has vowed to impose a 100% import tariff on any European country that introduces a digital services tax on American technology giants, threatening to ignite a new transatlantic trade war just days after the US and EU finalised a trade deal.
Writing on his Truth Social platform on Friday, the US president said “numerous European countries” had been discussing such a levy, and some were “close to actually doing this”. He warned that the punitive tariff would be applied immediately and would completely “supersede” any existing bilateral trade agreements.
“Donald Trump threatens 100% tariff on any European country imposing a digital services tax on US tech firms.”
“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.
The threat has direct implications for the UK, which has had a 2% Digital Services Tax (DST) in place since 2020. The tax applies to major search engines, social media platforms and online marketplaces with global revenues exceeding £500 million and UK revenues above £25 million – hitting Apple, Google, Meta and Amazon. It raised more than £800 million in 2024–25, up from £678 million the previous year, according to the Treasury. In April, Trump said the UK faced “a big tariff” for purportedly targeting US companies, adding: “They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country.”
France, Italy and Spain also impose a 3% digital services tax on large companies, and several other EU nations have implemented or proposed similar policies. The European Commission has warned it will retaliate. “Unilateral measures targeting such legitimate policies are unjustified,” said Olof Gill, a spokesperson for the European Commission. “If pursued, the EU will respond swiftly and decisively to defend its rights and regulatory autonomy.” Gill insisted the taxes applied to “all large companies, regardless of their origin.”
Michael Damianos, minister of energy, commerce and industry of the Republic of Cyprus, earlier said that “the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake”.
The US Supreme Court in February struck down Trump’s earlier attempt to impose a global tariff of 10%. Nevertheless, the US recently announced new tariffs of 10–12.5% on dozens of countries. The Department for Business and Trade and the Treasury have been contacted for comment.
Amazon earlier this year upped its fees on sellers, citing such taxes. If Trump follows through on his warning, it could set off a larger trade war between the US and the 27-country EU bloc, with both sides braced for economic retaliation.