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US President Donald Trump on Friday warned that countries imposing a Digital Services Tax (DST) on American companies could face a 100% tariff on all goods exported to the United States.
In a post on Truth Social, Trump said several European nations are considering introducing digital taxes on US firms. He warned that any country implementing such a tax would immediately face a 100% tariff, regardless of existing or future trade agreements with the US.
“Any country that imposes such a tax will immediately be met with a 100% tariff on all goods sent to the United States,” Trump wrote.
The move is unlikely to affect India, as New Delhi has already removed some of its digital tax measures in recent years. The White House has also said that India will fully withdraw the DST as part of the ongoing trade negotiations with the US.
Supporters of digital taxes argue that major technology companies should pay taxes in the countries where they generate revenue and that such measures help prevent tax avoidance.
Trump has consistently opposed foreign taxes and regulations targeting American tech companies. Last year, he also warned of tariffs against countries introducing such measures.
Earlier this month, Trump threatened France with a 100% tariff on wine and champagne unless it removed its digital tax on technology firms. France introduced a 3% tax in 2019 on revenues earned by major tech companies, including Facebook, Amazon, Apple, and Google parent Alphabet.
Canada had also scrapped its digital services tax last year following pressure from the Trump administration to keep trade talks with the United States on track.
