Trump threatens ‘immediate 100pc tariffs’ on European countries over tech taxes

Warning raises questions for UK, which already charges digital services tax on firms including Google, Amazon, Meta and Apple

Donald Trump has threatened to impose 100 per cent tariffs on goods from European countries that tax American technology giants.

The U.S president said any country imposing a digital services tax would “immediately” face a 100 per cent tariff on all goods sent to the United States.

The warning raises questions for Britain, which has had a digital services tax in place since 2020.

The UK’s two per cent levy applies to major search engines, social media platforms and online marketplaces with global digital revenues of more than £500m and UK revenues of more than £25m.

It affects some of the biggest U.S technology companies, including Google, Amazon, Meta and Apple.

The tax raised more than £800m for the Treasury in 2024-25, up from £678m the previous year.

Trump wrote on Truth Social that “numerous European countries” were discussing such levies and that some were close to introducing them.

He said: “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.”

The post appeared to target countries planning the “imminent implementation” of new levies, meaning the immediate implications for the UK were not clear.

Trump had already criticised Britain’s digital services tax in April, saying the UK faced “a big tariff” for allegedly targeting major U.S companies.

He said at the time: “They think they’re going to make an easy buck, that’s why they’ve all taken advantage of our country.”

France, Italy and Spain also impose digital services taxes of three per cent on large companies operating in their markets.

Several other EU countries have introduced or proposed similar taxes, according to the Tax Foundation.

 Trump’s latest threat came days after the U.S and EU finalised a new trade deal, which caps tariffs on most EU products at 15 per cent.

He later accused the EU of failing to comply with the agreement – which did not include details on digital services taxes – and said Brussels had until July 4, US Independence Day, to reach a deal or face higher tariffs.

Trump claimed he had a “great call” with European Commission President Ursula von der Leyen and said the EU had promised to cut its tariffs to zero.

He wrote: “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels.”

Trump had previously threatened to raise tariffs on EU cars and trucks from 15 per cent to 25 per cent, a move that would hit one of Europe’s most important export industries.

READ MORE: UK to slash steel import quotas as ministers target bigger share for domestic producers. A new government steel strategy aims to lift the share of UK demand met by British-made steel from 30% to as much as 50%, with tougher import controls and up to £2.5bn in financing promised this Parliament. 

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^{Main image: Donald Trump has threatened 100 per cent tariffs on European countries that impose digital services taxes on US tech giants. Picture: Daniel Torok/White House/Facebook/Public Domain; composite image.}