Trump Threatens 100% Tariffs on European Countries Over Digital Tax

U.S. President Donald Trump issued a stern warning on Friday, threatening to impose a 100% tariff on all goods from European countries that implement a digital services tax targeting American companies. Trump declared on his social media platform, Truth Social, that any nation enacting such a tax would face immediate retaliatory tariffs, which would also void existing trade agreements with the United States.

This announcement comes just a day after European Union countries approved a trade agreement negotiated last year with the U.S., which includes a 15% cap on taxes for European imports. However, Trump indicated that this was insufficient, expressing his intent to challenge non-tariff barriers, specifically European regulations in technology and environmental sectors, which he claims hinder U.S. exports.

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Any country that imposes such a tax will be met with an immediate response of a 100% tariff on all goods sent to the United States. This tariff will nullify all trade agreements concluded with the country in question.

In response to Trump's threat, a spokesperson for the European Commission stated that the EU would react "rapidly and with determination" if the U.S. proceeds with these "unilateral and unjustified" measures. The EU has previously signaled its readiness to counter protectionist actions, highlighting potential trade disputes between the transatlantic partners.

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The EU will react 'rapidly and with determination' if Trump moves forward with these 'unilateral and unjustified' measures.