Trump Threatens 100% Tariffs Over Digital Services Taxes
President Donald Trump said Friday that countries imposing digital services taxes on U.S. companies could face a 100% tariff on their goods, escalating a long-running dispute over how major technology firms are taxed internationally.
In a post on Truth Social, Trump wrote that any such tariff would override existing or pending trade agreements with the affected country. He said the tariffs would be imposed immediately if countries move forward with digital tax measures.
Digital services taxes are generally designed to apply to large technology companies that generate revenue from users in a country, even if the firms have limited physical presence there. Because many of the largest companies covered by these taxes are based in the United States, including Meta, Alphabet and Amazon, U.S. officials have argued that the policies disproportionately affect American businesses.
More than a dozen countries have adopted some form of digital services tax, according to tax policy researchers. Trump’s latest statement referred specifically to “numerous European countries” that he said are considering such measures, though he did not identify particular governments in the post.
The threat also raises legal and procedural questions. It is not immediately clear what authority the administration would use to impose country-specific tariffs of that size without congressional action.
The Supreme Court recently struck down Trump’s earlier “reciprocal” tariff policy, ruling that the International Emergency Economic Powers Act did not give the administration authority to impose broad individualized tariffs on nearly all countries. Following that decision, Trump announced a separate 10% global tariff under Section 122 of the Trade Act of 1974. However, tariffs imposed under that law are limited to 150 days unless Congress approves an extension.
The announcement signals that digital taxation remains a significant point of tension in U.S. trade policy, particularly between Washington and governments seeking to tax large multinational technology companies.