Trump threatens 100% tax on European imports if countries impose tax on
digital services
[June 27, 2026] By
COLLIN BINKLEY
WASHINGTON (AP) — President Donald Trump on Friday threatened a 100% tax
on imports from any country that imposes a tax on digital services from
United States companies.
In a post on social media, Trump took aim at European countries that he
said are discussing “imminent” implementation of taxes on American
companies. The U.S. president has repeatedly sought to use tariffs as
way to deter such taxes, but many countries are looking for revenues as
their economies increasingly operate in digital realms that are
dominated by American companies.
“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,” Trump wrote.
He added that the new tax would supersede any previously negotiated
trade deals. Trump said the penalty would apply to any country that
moves forward with such a tax, but he singled out European nations in
his post.
The move could lead to a larger showdown that could increase prices and
hinder economic growth, possibly setting off a larger trade war if the
27-member European Union was compelled to retaliate.
“Unilateral measures targeting such legitimate policies are unjustified.
If pursued, the EU will respond swiftly and decisively to defend its
rights and regulatory autonomy,” said Olof Gill, a spokesperson for the
European Commission on Friday.
He defended taxation on technology companies as “non-discriminatory” and
applied equally to “all large companies, regardless of their origin.”
Trump has repeatedly pushed against foreign efforts to tax or regulate
American tech giants. Last year, he threatened new tariffs on any
country that moved to do so. A post from last August said that digital
taxes and regulation “are all designed to harm, or discriminate against,
American Technology.”
The threat comes ahead of Trump's July 4 deadline for the European Union
and the United States to start implementing a tariff deal that caps
tariffs on most EU exports at 15%.
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President Donald Trump speaks at a Rose Garden Club dinner with
farmers, in the Rose Garden of the White House, Thursday, June 25,
2026, in Washington. (AP Photo/Jacquelyn Martin)
 The European Union in May finalized
a trade deal with the United States that caps most tariffs on EU
exports at 15%. The deal followed months of debate within the EU
after European Commission chief Ursula von der Leyen tentatively
struck the deal last year while visiting Trump’s golf course in
Scotland.
Digital taxes were not part of the agreement and have remained a
sticking point between the U.S. and the European bloc.
The U.S. government has previously conducted tariff investigations
into digital services taxes under Section 301 of the Trade Act of
1974. But it was unclear how Trump would carry out his threat and
whether he would apply the tariffs broadly or initially target
certain nations.
Britain, which is no longer part of the EU, has since 2020 levied a
2% digital services tax on revenues earned by search engines, social
media sites and online marketplaces that “derive value” from U.K.
users.
The British government said in a policy document at the time that
corporate tax rules for digital businesses had “led to a
misalignment between the place where profits are taxed and the place
where value is created.”
The U.K. tax includes thresholds, so mainly large international
companies will pay it. The tax was designed to “ensure the large
multinational businesses in-scope make a fair contribution to
supporting vital public services,” the document said.
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AP reporters Sam McNeil in Brussels and Kelvin Chan in London
contributed to this report.
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