Washington: President Donald Trump on Friday issued a stark warning that any nation imposing a digital services tax on US companies would immediately face a 100% tariff on all goods exported to the United States.
“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,” Trump said in a social media post. He added that the punitive duty would take precedence over any trade accords, whether already active or still being negotiated.
The announcement came after European Union members accelerated preparations to cut tariffs on American products ahead of a July 4 deadline tied to a broader trade understanding reached last year. The deal capped US tariffs on EU exports at 15% and required the EU to remove tariffs on some US industrial goods. Missed deadlines for those commitments had already prompted Trump to warn he might bring back higher tariffs on European imports, such as cars, which in turn pushed EU lawmakers to speed up implementation, as reported by India Today.
The move also rekindles an ongoing clash over digital services levies that several European governments have enacted or contemplated. The US contends those taxes unfairly target American technology firms that dominate global digital markets.
French President Emmanuel Macron has resisted Washington’s approach, asserting France will not yield on its digital tax. France implemented a 3% digital services tax in 2019 that applies to companies with at least €25 million in revenue generated in France and €750 million globally. French lawmakers proposed raising the rate to 6% last year.
Earlier this month, Trump singled out France, saying the United States would have “no choice” but to impose 100% tariffs on French wine and champagne if Paris kept its digital tax. The Office of the US Trade Representative has previously warned of retaliatory duties against France, Britain, Spain, Austria and other countries, arguing those levies discriminate against US-based firms.
