United States President Donald Trump threatened on Friday to impose 100 percent tariffs on products from European countries that approve a digital services tax applicable to US companies.
Trump posted the message on his Truth Social network. “Numerous European countries have been debating the imminent implementation of a tax on digital services applicable to US companies. Some of these countries are about to carry it out,” the president said.
“Let this statement serve as a warning that any country that imposes said tax will immediately face a 100% tariff on all products shipped to the United States of America,” Trump added. The tariff would prevail over any prior trade agreement.
The European Commission responded that the EU and its member states have the sovereign right to regulate economic activities in their territory. Brussels warned it would respond “quickly and forcefully” to unjustified unilateral measures.
Spain was one of the pioneer countries in applying this tax, approved during the pandemic and which levies a 3% rate on online advertising services, intermediation and data sales by companies with turnover above 750 million euros.
