Trump threatens 100% tariffs on countries that impose digital services taxes on US companies
US President Donald Trump threatened to impose 100% tariffs on goods from any country that imposes a digital services tax on US companies, escalating a long-running dispute with European governments over the taxation of big US technology firms.
Trump said in a social media post that "many European countries" were discussing the immediate implementation of such taxes and that some were close to taking action.
Any country that continues will immediately face a 100% tariff on all goods it sends to the United States, Trump said, adding that the measure would supersede existing trade agreements with the country in question, regardless of whether they have been signed, implemented or not.
The European Commission rejected the threat, saying that digital services taxes are designed to be non-discriminatory and apply equally to all large companies regardless of origin, according to media reports.
A Commission spokesman said that unilateral measures against legitimate policies were unjustified and that the European Union would react quickly and decisively if challenged, in order to protect its rights and regulatory autonomy.
Several European countries in recent years have moved to tax the income generated by big tech companies, including Google, Amazon and Alphabet's Apple, from digital operations in their markets. The United States has long argued that such taxes unfairly target American tech giants.
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