Trump Threatens 100% Tariffs On Countries Taxing US Tech Giants, Says Trade Deals Won't Matter

Last Updated:June 26, 2026, 22:54 IST

Trump warns countries imposing digital services taxes on US tech firms will face 100% tariffs on exports, threatening to scrap trade deals and escalate trade tensions.

US President Donald Trump has warned that any country imposing a digital services tax on American technology companies could face a 100% tariff on exports to the United States, saying such duties would override existing trade agreements.

In a post on social media, Trump said countries that levy digital services taxes targeting US firms would face steep retaliatory tariffs, adding that “existing trade deals would be scrapped" if necessary.

What Is A Digital Services Tax?

A digital services tax (DST) is a levy imposed on the revenues of large digital companies that generate income from online advertising, digital marketplaces and user data. Several European countries have introduced or proposed such taxes, arguing that multinational technology firms should pay more tax where they earn revenue.

The United States has long opposed these measures, arguing they disproportionately target American companies such as Google, Apple, Meta, Amazon and Microsoft.

Trade Tensions Could Escalate

Trump’s latest warning comes as Washington and European governments continue to disagree over digital taxation, despite reaching a broader trade agreement earlier this year. The digital services tax remains one of the key unresolved issues in transatlantic trade relations.

The president said any nation implementing such a tax should expect a 100% tariff on all goods exported to the US, regardless of existing or future trade agreements.

Part Of A Wider Push

Trump has repeatedly threatened trade action against countries with digital services taxes. Earlier this year, he warned Britain of tariffs over its 2% digital tax on major US technology companies and also threatened France with 100% tariffs on wine unless Paris withdrew its digital tax.

The latest warning signals that the administration is prepared to broaden its trade response beyond individual countries, potentially affecting any nation that introduces digital taxes aimed at US tech firms.

News world Trump Threatens 100% Tariffs On Countries Taxing US Tech Giants, Says Trade Deals Won't Matter

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