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Tariff threat over digital tax
U.S. President Donald Trump threatened on Friday to impose a 100 percent tariff on any country that implements a digital service tax on American companies, saying the retaliatory tariff would override any previous agreements.
“United States President Donald Trump has threatened to impose a 100 percent tariff on any country that implements a digital service tax on US tech companies, adding that the new tariffs would override any previous agreements”
In a Truth Social post, Trump wrote, "Please let this statement serve to represent that any Country that imposes such a Tax will immediately be met with a 100 percent TARIFF on any and all Goods sent to the United States of America."
Trump said the proposed tariff would "supersede" trade deals, and he pointed to Europe as a possible target for the tariffs.
The threat came as the European Union finalized a deal with the U.S. capping tariffs on most EU products at 15 percent, a deal that did not include details on digital service taxes.
Europe and the July 4 deadline
Trump’s warning followed EU countries moving to meet Washington's July 4 deadline to reduce tariffs on U.S. goods, with the U.S. tariff cap set at 15 percent for most EU exports.
Business Standard reported that Trump said the proposed tariff would override any existing or future trade agreements with the United States, escalating transatlantic tensions despite progress on a broader trade deal.
The CBS News account said Trump set a July 4 deadline for the European Union and the U.S. to finalize a trade deal that caps tariffs on most EU exports at 15%, while digital taxes remained a sticking point between the U.S. and the European bloc.
The Hill reported that the European Commission responded later Friday, arguing the bloc and its member states “have the sovereign right to regulate economic activities on their territory, in line with our democratic values and international commitments.”
Legal and political fallout
The dispute also intersects with the U.S. legal and political timeline, with CNBC noting it was unclear which law would give Trump the authority to immediately slap massive tariffs on individual countries.
“President Trump is threatening to impose a 100% tariff on countries that levy a tax on U”
CNBC said the Supreme Court struck down Trump’s “reciprocal” tariffs and that the high court ruled the International Emergency Economic Powers Act did not authorize the Trump administration to unilaterally impose sweeping global tariffs.
In the same CNBC account, it said Trump announced he had signed an executive order imposing a new global 10% tariff under Section 122 of the Trade Act of 1974, while adding that tariffs created using that statute can last for only 150 days.
The Hill also quoted Trump’s earlier framing of such measures, including his August 2025 post that digital taxes and regulations are intended to weaken U.S. companies, writing, “America, and American Technology Companies, are neither the 'piggy bank' nor the 'doormat' of the World any longer.”
