According to a report by the American Wall Street Journal, US President Donald Trump posted a threat on social media on June 26, stating that if European countries insist on implementing tax increases targeting US technology companies, the United States will significantly raise tariffs on European countries.
Trump wrote that several European countries are discussing a digital service tax for American businesses. Trump said that any country that imposes such a tax would see all its goods exported to the United States immediately subject to a 100% tariff.
Over the years, many European countries have been considering taxing large tech companies such as Amazon and Meta platforms. Countries like France have already imposed digital taxes on American tech companies. The United States has always opposed such taxation measures. In addition to Europe, Trump also used tariffs as a threat against Canada and South Korea, arguing that these two countries were suspected of discriminating against American tech companies.
Earlier this month, Trump also threatened that if France did not cancel the taxes imposed on American technology companies, the United States would impose a 100% tariff on French wine. However, so far he has not fulfilled this threat.
A spokesperson for the European Union stated that the EU and its member states have the right to regulate economic activities within their territories. The tax policies introduced by various countries are not discriminatory in any design aspect.
The spokesperson said that if the US insists on taking retaliatory measures, the EU will promptly take decisive actions to defend its rights and regulatory autonomy.
Last year, Trump reached a trade agreement with the EU. The agreement stipulated that tariffs on most European goods exported to the US would be capped at 15%, in exchange for the EU reducing certain tariffs and making other concessions. However, the issue of the digital tax remains unresolved.
Trump wrote that if European countries implement new digital taxes, high tariffs of 100% will “replace” the relevant provisions of this EU-American trade agreement.
Trump added that once the taxation plan is implemented, the US will immediately impose high tariffs. However, it is currently unclear under which legal authority the US will act. In February of this year, the US Supreme Court ruled that several of Trump's previous tariff policies were illegal. A lengthy investigation process will be required before the new taxation measures can be implemented.
