Trump threatens 100% tariff over digital services tax
· RTE.ieUS President Donald Trump has threatened to slap a 100T tariff on European countries that impose a digital services tax, adding that existing trade deals would be scrapped.
The move comes just a day after EU countries gave the green light to a trade agreement negotiated last year with the United States, which caps taxes on European imports at 15%.
"Numerous European Countries have been discussing the imminent implementation of a Digital Services Tax on American Companies," President Trump said in a social media post. "Some of these Countries are close to actually doing this.
"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."
Mr Trump said the new tariff would supersede any trade deals with the United States, "whether implemented, signed or not."
Last week, hours before the two met at the G7 summit, French President Emmanuel Macron said France would not bow to pressure from Mr Trump and scrap its digital tax on US tech giants.
Before setting off for the summit in France, Mr Trump had warned that the US would "have no choice" but to apply 100% tariffs on French wine unless Paris eliminated its digital tax.
France has applied a 3% levy since 2019 on revenue from digital services earned by companies with revenues of more than €25m in the country and €750m worldwide.