Agencies | Washington:
US President Donald Trump has warned that any country imposing a digital services tax (DST) on American technology companies could face a 100 per cent tariff on exports to the United States, saying such measures could override existing trade agreements.
In a post on social media, Trump said countries that levy digital services taxes targeting US firms should expect steep retaliatory tariffs, adding that “existing trade deals would be scrapped” if necessary.
A digital services tax is a levy imposed on the revenues of large digital companies that generate income through online advertising, digital marketplaces and the use of consumer data. Several European countries have introduced or proposed such taxes, arguing that multinational technology firms should pay taxes in the jurisdictions where they earn their revenues.
The United States has consistently opposed such measures, maintaining that they disproportionately target major American technology companies, including Google, Apple, Meta, Amazon and Microsoft.
Trump’s latest warning comes amid continuing disagreements between Washington and several European governments over digital taxation, despite reaching a broader trade agreement earlier this year. The issue of digital services taxes remains one of the principal unresolved matters in transatlantic trade relations.
The President said any country implementing such a tax should expect a 100 per cent tariff on all goods exported to the United States, irrespective of existing or future trade agreements.
Trump has repeatedly threatened trade action against countries that impose digital services taxes. Earlier this year, he warned the United Kingdom of tariffs over its two per cent digital tax on major US technology firms and also threatened France with 100 per cent tariffs on wine unless Paris withdrew its digital tax.
The latest warning signals that the US administration is prepared to expand its trade response beyond individual countries, potentially affecting any nation that introduces digital taxes aimed at American technology companies.
