Why Trump has threatened 100% tariff on European countries

Why Trump has threatened 100% tariff on European countries

US President Donald Trump has threatened to impose a 100% import tariff on any European country that imposes a tax on digital services provided by American companies.

The threat comes as part of Trump's ongoing global trade war, where he has imposed heavy tariffs on countries and economic blocs.

If implemented, this could trigger a wider trade conflict between the US and EU.

Trump's tariff threat

In a post on Truth Social, Trump said "numerous European countries" were considering a digital services tax on American companies.

He warned that any country imposing such a tax would immediately face a 100% tariff on all goods sent to the US.

The President also clarified that this tariff would be imposed immediately and supersede any pre-existing trade deals with the country.

Digital services taxes in Europe

Countries like France, Spain, and Italy have a 3% digital services tax on big companies operating within their borders.

The UK has a 2% digital services tax for social media platforms, large search engines, and online marketplaces with global revenues from digital services exceeding £500 million.

These taxes affect US tech giants such as Apple, Google, and Amazon.